- Food and drink prices in the hospitality sector rose by 1.1% in December, according to the latest edition of the Foodservice Price Index from Prestige Purchasing and NIQ, powered by CGA intelligence.
The sharp upward month-on-month movement marks a significant acceleration in inflation to close the year. It was driven by high demand for many items in the run-up to Christmas, as well as persistent supply-side constraints.
The Index recorded steep increases in prices in several high-volume categories. They included Milk, Cheese & Eggs, which recorded the highest rise at +1.9%, as domestic price pressures intensified despite continued softening in global dairy commodity markets. Disruptions related to Avian Flu 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. Inflationary momentum also remained critically high in Coffee, Tea & 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.
In Meat & Poultry, the centrepiece category of the festive period, 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.
Shaun Allen, CEO of Prestige Purchasing, 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. 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.”
Reuben Pullan, senior insight consultant in the hospitality operators and food team at NIQ, said: “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. This remains a resilient and dynamic sector with lots to look forward to in 2026, but businesses will be keeping everything crossed for relief on inflation and key costs in the months ahead.”
For further information, interviews or images, contact Prestige Purchasing on 01908 222678 or stuart.read@prestige-purchasing.com.
About Prestige Purchasing
Prestige Purchasing is one of the UK’s leading specialists in procurement and supply chain management for the hospitality, catering, leisure, retail and private healthcare sectors.
About NIQ
NielsenIQ (NIQ) is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. Our global reach spans over 90 countries covering approximately 85% of the world’s population and more than $7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™. For more information, please visit www.niq.com.
This press release includes forward-looking statements that reflect NielsenIQ’s (NIQ) current expectations and projections about future market trends and consumer behavior. These statements are based on available information and reasonable assumptions but are subject to risks and uncertainties that could cause actual results to differ. NIQ does not undertake to update these statements, except as required by law.
