01 Oct 2025
Food prices rise for fifth consecutive month
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Food and drink prices in the hospitality sector rose by 0.4% in the month to August, the latest Foodservice Price Index from CGA by NIQ and Prestige Purchasing reveals. It represents a fifth consecutive month of price increases as hospitality businesses continue to navigate widespread inflationary pressures.
Persistent inflation is being driven by a complex mix of global factors, including geopolitical volatility, adverse weather conditions and sustained high input costs. It comes at a crucial time for the hospitality sector, as it prepares for the end-of-year trading period.
Pressures have been particularly acute in key categories including oils & fats, where a significant uptick was driven by higher international prices for palm, sunflower and rapeseed oils amid robust global import demand and tightening supplies. The coffee, tea & cocoa category saw the most substantial year-on-year increase, with prices surging as a result of global supply constraints and weather concerns in major producing regions.
The meat & poultry category recorded a further price rise, with high inflation in beef and lamb lifting the Food and Agriculture Organisation’s Meat Price Index to an all-time high. This was in contrast to poultry prices, which declined slightly due to ample supplies from abroad. Costs also rose in the milk, cheese & eggs category, and increased production and labour costs may sustain upward price trends here.
Shaun Allen, CEO of Prestige Purchasing, said: “The August report reflects a difficult and ongoing reality for the hospitality sector. While some prices have stabilised or even slightly reduced, the overall trend is one of persistent increases driven by a mix of climate variability, geopolitical issues and enduring pressures on energy and logistics. Success for businesses in this climate lies in a proactive approach to their supply chain, where strategic planning can help to mitigate the impact of this sustained volatility and build long-term resilience.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “Yet another increase in food and drink prices is cause for concern as hospitality begins the long run-in to Christmas and New Year. Relentless inflation is tightening the squeeze on consumers’ spending in discretionary areas, and sapping the confidence of hard-pressed restaurants, pubs and bars. Businesses will be keeping everything crossed for respite on both macro geopolitical factors and micro supply issues in the coming weeks.”
Pressures have been particularly acute in key categories including oils & fats, where a significant uptick was driven by higher international prices for palm, sunflower and rapeseed oils amid robust global import demand and tightening supplies. The coffee, tea & cocoa category saw the most substantial year-on-year increase, with prices surging as a result of global supply constraints and weather concerns in major producing regions.
The meat & poultry category recorded a further price rise, with high inflation in beef and lamb lifting the Food and Agriculture Organisation’s Meat Price Index to an all-time high. This was in contrast to poultry prices, which declined slightly due to ample supplies from abroad. Costs also rose in the milk, cheese & eggs category, and increased production and labour costs may sustain upward price trends here.
Shaun Allen, CEO of Prestige Purchasing, said: “The August report reflects a difficult and ongoing reality for the hospitality sector. While some prices have stabilised or even slightly reduced, the overall trend is one of persistent increases driven by a mix of climate variability, geopolitical issues and enduring pressures on energy and logistics. Success for businesses in this climate lies in a proactive approach to their supply chain, where strategic planning can help to mitigate the impact of this sustained volatility and build long-term resilience.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “Yet another increase in food and drink prices is cause for concern as hospitality begins the long run-in to Christmas and New Year. Relentless inflation is tightening the squeeze on consumers’ spending in discretionary areas, and sapping the confidence of hard-pressed restaurants, pubs and bars. Businesses will be keeping everything crossed for respite on both macro geopolitical factors and micro supply issues in the coming weeks.”
