December 2022 marks the eleventh consecutive month of double-digit inflation, after a year of intense inflationary pressures for foodservice businesses. Year-on-year inflation in the food basket of the Index - excluding beverages - was even higher at 24%.
Commenting on new data from the CGA Prestige Foodservice Price Index, showing food and drink inflation for food service businesses reached a record high of 24% in December 2022, UKHospitality Chief Executive Kate Nicholls said:
“The central food and drink element of hospitality means that this level inflation puts the sector yet deeper into jeopardy.
“It’s another in a series of price increase across all fronts of operations and businesses will have no choice but to pass it on to customers. That will make it harder for the Government to deliver on its key commitment to reduce inflation across the wider economy.
“This simple economic fact underlines the importance of Government investing in and supporting the sector to help keep our prices as low as possible, if they want to achieve their target of halving inflation.
“We recognise that public finances are tight, but an injection of support into hospitality can repay the cost many times over through the additional sales it creates, the growth this generates and the jobs it can offer.”