Food and drink prices in the hospitality sector rose by 0.2% month-on-month in April, the latest Foodservice Price Index from NIQ and Prestige Purchasing reveals.
It marks a return to inflation after a brief period of relief from domestic cost pressures, which led to deflation in March. April’s figures indicate that geopolitical issues, high crude oil prices, and tightening in key commodities are exerting renewed upward pressure on UK wholesale markets. Meanwhile, the protective buffer of forward contracts for businesses in the UK is beginning to wear thin.
Inflationary pressure was most keenly felt in Index categories highly exposed to energy, complex logistics, and climate volatility. Seafood, fresh produce and beverages all recorded notable cost increases, driven by factors ranging from stringent quota limitations and energy-intensive protected cropping to tightening global harvests.
Some other areas of the Foodservice Price Index, including dairy and domestic proteins, were better insulated from inflation by robust local supply and tactical supplier discounting. However, these pockets of relief are increasingly overshadowed by a structurally tight global supply chain.
Shaun Allen, CEO of Prestige Purchasing, said: “The return to month-on-month inflation in April confirms our previous warnings that the deflationary dip we saw in March was a temporary pause rather than a permanent correction. With global crude oil prices plateauing at elevated levels following recent geopolitical shocks, the cost of manufacturing, packaging, and logistics is steadily creeping back up.”
“While UK supply chains have done an excellent job of using forward contracts to shield operators from the worst of the international commodity spikes, this dam cannot hold forever. The broader firmness we are seeing across fresh and imported goods is an early indicator of what is to come. Operators must remain highly proactive, moving quickly to secure favourable terms before the full weight of these global costs reaches the UK market.”
Reuben Pullan, Senior Insight Consultant at NIQ, said: “The hospitality sector will be hugely frustrated by the abrupt end to the respite in inflation in early 2026. Renewed increases were widely expected after the start of war in the Middle East, and higher inflation is now almost certain to follow.
“This will bring a double whammy of cost pressures for operators and a tightening of spending for consumers, and it will be very difficult for both sides to mitigate the impacts. Hospitality is hoping for an easing of geopolitical tensions, but bracing itself for a tough summer.”
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