The uptick was driven by high demand for a number of items in the run up to Christmas, the latest edition of the Foodservice Price Index from Prestige Purchasing and NIQ stated.
Sharp increases were recorded for milk, cheese and eggs, which saw a 1.9% price rise, as domestic price pressures intensified despite continued softening in global dairy commodity markets.
Disruptions related to avian flu also reinforced volatility in egg supply chains, compounding costs during a peak usage period.
Fruit prices rose nearly as fast at 1.8% in December, as markets shifted to higher-cost glasshouse production for soft fruits and yields of Spanish citrus were significantly reduced.
Critically high
Inflationary momentum also remained critically high in coffee, tea and cocoa. Coffee markets continued to trade near multi-year peaks due to adverse weather in Brazil and Vietnam, while cocoa prices were close to record levels, driven by weak West African harvests and tight inventories.
For the meat and poultry segment, inflation accelerated to 1.5%, as strong seasonal demand collided with structural challenges. Beef traded at historically strong levels due to tight domestic availability, while poultry markets were volatile due to disruptions to supply from avian flu.
Prices also rose in categories including oils & fats and sugar, jam, syrups & chocolate, highlighting a broad-based inflationary environment where domestic energy, labour and logistics costs are limiting the pass-through of any softening in global commodities.
Prestige Purchasing CEO Shaun Allen said: “The 1.1% month-on-month surge in December was a stark reminder of the volatility that continues to plague the supply chain.
“While global indices for sugar and vegetable oils showed signs of easing in 2025, the reality for UK operators was very different.
Unwelcome end
“Acute supply shocks, from avian flu in poultry and eggs to climate-driven shortages in coffee and cocoa, combined with high domestic operational costs to drive prices up significantly just as the sector needed stability the most.”
NIQ senior insight consultant for hospitality operators and food Reuben Pullan added while the hospitality sector remained resilient and dynamic, inflationary relief would be critical in the coming months.
Pullan continued: “Another spike in pricing was an unwelcome end to a tough year of trading for hospitality.
“Coming alongside sharp rises in other areas, food and drink inflation is piling yet more pressure on operators’ profitability, while forced menu rises are impacting the spending confidence of their guests.”
