Inflation
UK Inflation Falls, but Rates Hike Fear Remains
UKHospitality Responds to July U.K. Inflation Numbers
UKHospitality Responds to July U.K. Inflation Numbers
'The rate of inflation reducing more than expected is good news for hospitality businesses, but it remains the case that food and energy costs are incredibly high. '
Its encouraging that we have seen a more substantial drop in the overall rate of inflation, but it is worrying that food and drink inflation remains stubbornly high.
'Its becoming increasingly concerning that were not seeing inflation decrease as quickly as many hoped, particularly when business costs are experiencing inflation far higher than the 10.1% released by the Office for National Statistics today'
New data today showing food service price inflation remains above 20%, coupled with rising energy costs and a lack of support, signals the need for urgent intervention to save hospitality businesses.
'The rate of inflation decreasing for three months in a row is promising but it remains the case that price rises continue to significantly hinder hospitality businesses'
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%.
The biggest challenges affecting hotels through this period of high inflation relate to the cost of labour, rising energy prices, coping with supply chain issues, the cost of debt and uncertainty that makes budgeting for the year ahead almost impossible.
Speaking at the Hotel Data Conference, STR's Isaac Collazo said current data indicates a recession is unlikely due to strong employment.