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Business leaders networking at the Peach 20/20 Conference  

23 Feb 2023

Foodservice price inflation falls for first time in more than a year

Foodservice price inflation fell slightly to 22.0% in January, the new edition of the CGA Prestige Foodservice Price Index (FPI) reveals. While only a small change from the Index’s record high of 22.9% in December, it marks the first drop in inflation since September 2021.
However, all categories of the Index remain in double-digit inflation, with oils & fats recording the highest level of year-on-year increase at 42.2%, while milk, cheese and eggs continued to rise quickly at 37.7%. Vegetable prices are also feeling inflationary pressures, having increased month-on-month by more than 3.5% for three months in a row. 

The three major upstream influencers on the price of food—oil, exchange rates and commodity markets—are now more stable than in 2022. The UN FAO Food Price Index of food commodities averaged 131.2 points in January 2023—down by 1.1 points from December, marking a tenth consecutive month of decline. 

However, energy costs continue to be at extremely high levels against a background of a tightening of government support, and higher labour costs within supply chains show few signs of easing. A significant reduction in food and drink prices is only likely to begin with an end to conflict in Ukraine, so the outlook for 2023 therefore remains volatile. 

Read the full story and to download the report here
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