UK food prices are stabilising

After three years of inflation, wholesale foodservice prices are now stabilising, according to new research.  The latest CGA Prestige Foodservice Price Index reported prices had been dropping, other than a small rise over the summer due to poor conditions for seasonable fruit and vegetables. However, we have to keep in mind that uncertainty about Brexit and challenges to some categories of food and drink mean more turbulence is a possibility.

The summer was difficult for the fruit category, but it saw a month-on-month drop in prices of 2.7%. However, this does little to ease pressures and year-on-year inflation is at 17%.

Polish apples are increasingly popular worldwide and after poor weather conditions, this year's crop is reportedly close to half the size of last year's, pushing prices up by almost 50%.

The UK has seen a shortage of fruit-picking labour with the National Farmers Union reporting up to 16m applies being left to rot in orchards.

Good sign
Prestige Purchasing chief operating officer Phil McGuinness said: "We are still seeing issues occurring across multiple categories as we head into the winter months. "However, the continued drop in month-on-month inflation across the index is a good sign for buyers. After a couple of rough inflationary years, the recent trend of negative month-on-month numbers across numerous categories will be helping to relieve pressure on operators."

Source: morningadvertiser.co.uk


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