Foodservice price inflation has dropped for the second month running, reaching 7% year-on-year for July 2017.
This was in spite of having hit a record high 9% in May 2017 – the highest point in nearly nine years.
CGA Prestige Foodservice Price Index reports that the most notable category to have dropped in inflation is Fish, where an abrupt increase in prices between June and July 2016 can be compared to a reduction in prices across the same period in 2017.
This could be due to a number of factors, including North Sea Cod being declared last month as sustainable by the MSC, which saw demand for cod increase drastically.
Sugar and cocoa prices have also continued to fall, and as the sugar levy for soft drinks nears and suppliers look to reformulate recipes by switching to sugar alternatives, prices are likely to continue to drop in the coming months as demand in the category continues to fall.
The CGA Prestige Foodservice Price Index is jointly produced by consultancy Prestige Purchasing and data analyst CGA Strategy, using data drawn from over 50% of the foodservice market and around 7.8m transactions per month.