Inflation likely to rise as food sector reopens

Food prices are expected to climb further into past 2020 as volumes recover, according TO CGA's Food Service Price Index and Prestige Purchasing.

Figures from the February 2021 index show that overall 'food basket' prices fell by 2.6 per cent year-on-year over January 2021, despite an increase of 2.2 per cent.

Prices of dairy, fish and seafood fell sharply today on the back of the Brexit-sparked slowdown in exports.

Shaun Allen, the CEO of Prestige Purchasing said: "We expect prices to rebound as volumes recover, probably to above 2020 levels by later in the year. Operators would be well advised to seek price holds from suppliers while the current inflation levels remain benign. They should also avoid taking a renewal of pre-lockdown supply for granted, as the commercial impacts of the winter lockdown have been harmful to many supplier balance sheets."

"After a tumultuous 2020 and early 2021, it is heartening to see the hospitality sector starting to return, and the success of the vaccine rollout raises confidence that consumer spending will bounce back well as the year goes on," stated CGA Customer Director with regard to Food Fiona Speakman.