The latest foodservice price index from Prestige Purchasing and NIQ showed prices increased by 0.4% month-on-month.
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The report said inflationary pressures remained embedded across the hospitality supply chain, driven by stronger global commodity markets and weather-related concerns.
High-inflation areas included sugar, jam, syrups and chocolate, with global sugar prices rising after adverse weather in Europe and Asia and lower production in Brazil tightened supply expectations.
Commodity pressure
Meat and poultry prices also returned to inflation, reflecting renewed pressure across global protein markets.
The index said strong demand and constrained supply, particularly for pork and lamb, pushed international prices higher, alongside elevated feed and operational costs.
Milk, cheese and eggs recorded their highest month-on-month increase in several months, after hot and dry weather reduced raw milk availability in Europe and pushed up cheese and milk powder prices.
Oils and fats also saw upward pressure, with global vegetable oil markets reaching their highest level since 2022 amid demand for palm and soybean oils and concern over El Niño.
Fresh produce relief
Some fresh produce categories helped offset wider inflation.
Vegetable prices fell due to favourable domestic supply, although the report warned prolonged dry weather in the UK and Europe could affect future yields for several field-grown crops.
Fruit inflation also eased, supported by strong seasonal availability of UK-grown soft fruits, stone fruits and early apples.
Shaun Allen, chief executive of Prestige Purchasing, said the 0.4% monthly increase showed inflation remained in the market, but represented a “relatively minor fluctuation”.
He said: “We are seeing strong domestic supply in fresh produce actively balancing out the more volatile global commodity markets like sugar and dairy. However, operators should enjoy this relative stability while remaining highly vigilant. The overarching trend still points to persistent, underlying pressures driven by climate variability and geopolitics.”
NIQ senior insight consultant Reuben Pullan said the uptick was an “unwelcome development” as hospitality moved towards the crucial final quarter.
He said: “It adds yet further to the huge burden of costs on operators, who will be anxious for targeted support in the Government’s October Budget.
“An easing of some fresh produce prices is welcome, but an exceptionally hot and dry summer means respite may be limited.
“Sustained relief on inflation is likely to be some way off for businesses and consumers alike.”
