With the Consumer Price Index (CPI) recording inflation at 10.1% for September, it was expected that food and drink prices for the hospitality sector would rise. However, according to CGA and Prestige Purchasing, inflation for the sector rose to 18.8%, up by 3.8% on the previous month.
When compared with CPI and overall food price inflation rising to 11.6%, the rise highlights the real pressure being applied to hospitality businesses.
According to the latest data, all food categories are now in double-digit inflation with dairy and meat showing the largest increases. In dairy, prices are up by 19% year on year with meat above 17%. Prestige Purchasing does not expect the situation to improve in the months ahead.
These latest increases come at a time when many rural hospitality and tourism businesses are reexamining how the businesses work. Some have already decided to reduce trading hours in order to limit energy consumption. For example, many venues are looking again at the festive period to decide whether to hold Christmas events even though this has tended to be one of the busiest times of the year.