Prestige Purchasing has warned foodservice operators and caterers that foodservice inflation will hit 3.4% next year, driven by currency fluctuations, political uncertainty and the unknown outcome of trade deals.
Speaking at the annual Food Inflation Event in London last night, Shaun Allen, Purchasing Operations Director at Prestige Purchasing warned the foodservice sector that, “What we’ve seen so far this year is that inflation for the foodservice sector is running at 0.5%. Movement in the exchange rate alone, has put up to £10.8bn worth of pressure on the UK’s food and drink value”.
Allen continues, “Next year, with uncertainty around Russian sanctions, Brexit, the Trump administration, coupled with a cut of 4.5% in oil production, and the currency exchange volatility that all this will bring, we can expect inflation for the foodservice sector to experience a sharp rise”.
Over the last year to date, the following categories have experienced fluctuations
- Fish – pricing for the foodservice sector is experiencing great volatility, driven by disease which is affecting supply
- Butter – has doubled in price in the last few months due to lower milk production. This is expected to affect other dairy products going forward
- Potatoes – reduced crops and lower UK yields have put upward pressure on prices
- Wheat – with global production increasing and the possibility of the end of Russian sanctions (one of the largest wheat producers in the world), prices are expected to remain stable, or could even see some downward pressure