The encouraging year-on-year trend was compounded by ‘persistent inflationary pressures’, with nine out of 10 categories showing month-on-month price increases.
“The continued easing of year-on-year inflation is welcome news, but the sustained month-on-month increases across almost all categories highlight the volatility that still exists in the market,” says Shaun Allen, Prestige Purchasing CEO.
“Operators need to be proactive and adaptable in their procurement strategies, paying close attention to emerging trends and potential disruptions to ensure they remain competitive.”
The Index shows that the vegetables category continues to report high inflation, driven in part by ongoing elevated potato prices.
Meanwhile, the oils and fats category saw the largest month-on-month increase, primarily due to a surge in butter prices.
While non-alcoholic beverages continue to be a significant driver of inflation, the sugar, jam, syrups and chocolate category, along with vegetables, now show the highest year-on-year increases.
“Although some costs are easing, month-on-month fluctuations indicate that both revenue and margins are likely to remain under pressure through the rest of 2024 and into next year,” notes Reuben Pullan, senior insight consultant at CGA by NIQ.
