This marks the 15th consecutive month of decline, offering some respite for businesses and consumers alike. However, the report also highlights persistent inflationary pressures, with nine out of 10 categories showing month-on-month price increases. This marks the fourth consecutive month of overall month-on-month inflation according to the index.

Despite the encouraging year-on-year trend, challenges remain. The vegetables category continues to report high inflation, driven in part by ongoing elevated potato prices. Meanwhile, the oils and fats category saw the largest month-on-month increase, primarily due to a surge in butter prices.

While non-alcoholic beverages continue to be a significant driver of inflation, the sugar, jam, syrups and chocolate category, along with vegetables, now show the highest year-on-year increases. This shift underscores the dynamic nature of foodservice inflation and the need for operators to remain vigilant across all categories.

Shaun Allen, Prestige Purchasing CEO, commented: “The continued easing of year-on-year inflation is welcome news, but the sustained month-on-month increases across almost all categories highlight the volatility that still exists in the market. Operators need to be proactive and adaptable in their procurement strategies, paying close attention to emerging trends and potential disruptions to ensure they remain competitive.”

Reuben Pullan, senior insight consultant at CGA by NIQ, said: “After an ongoing stretch of price rises across the hospitality sector, this continued drop in inflation should bring some relief to hospitality venues and consumers alike. Although some costs are easing, month-on-month fluctuations indicate that both revenue and margins are likely to remain under pressure through the rest of 2024 and into next year.”