The figure is below the record high of 22.9% in December 2022 and there is now evidence of price increases beginning to slow. The full basket of food measured by the Index increased by only 0.7% month-on-month—one third of the average rate recorded in the latter part of 2022.
Shaun Allen, chief executive of Prestige Purchasing, said: “In spite of falling inflation we expect the pressure on margins for operators to increase during 2023. Although the rate of increase will slow, supplier food prices will continue to increase during the year—at a time when consumer demand will be tightening and scope for increased menu pricing will be limited. Operators should take action now to optimise their supply to preserve margin.”
All categories of the Index remain in double-digit inflation, with oils & fats achieving the highest rate of 37% year-on-year, and the sugars, jams & syrups category lowest at 12%.
James Ashurst, client director at CGA by NIQ, added: “News of an easing in foodservice price inflation is very welcome after months of historically high numbers. Key indicators point to further respite as the year goes on, but commodity markets and oil prices remain vulnerable to various macro and micro pressures, so there is no room for complacency. With pressure on consumers’ spending continuing, trading conditions will remain very challenging for businesses across the sector.”