Foodservice price inflation edges up as global energy pressures intensify

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 on domestic costs led to deflation in March. April's figures indicate that geopolitical issues, high crude oil prices and tightening key commodities are exerting a renewed upward force 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 categories of the Index that are 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 in the hospitality operators and food team at NIQ, said: "A softening of food and drink inflation has been a rare bright spot for hospitality in early 2026, but the benefits will almost certainly be short-lived. Oil shocks and geopolitical uncertainty are storing up some seismic shocks in energy-related prices, and businesses and consumers alike will have to steel themselves for yet more price rises as the year goes on. Hospitality remains a dynamic and adaptable industry, but this new wave of inflationary challenges will be another severe test of their resilience."

For further information, interviews or images, contact Prestige Purchasing on 01908 222678 or [email protected].