UKH warns there is a ‘long way to go yet’ despite inflation fall

UKHospitality has warned that despite today’s (24 May) announcement that inflation fell to 8.7% in April, continued inflationary pressure means there is “a long way to go in this crisis yet”.

Whilst calling the overall figures “encouraging”, the trade body warned that the “stubbornly high” food and drink inflation is still concerning. It added that a sharp drop in their prices is needed for hospitality businesses to survive. 

The latest figures from the Office for National Statistics (ONS) marks the first time inflation has been in single digits since last summer.

Inflation was down from 10.1% in March 2023 and increased by 1.2% in April 2023, compared with a rise of 2.5% in April 2022.

However, food and non-alcoholic beverage prices continued to rise in April and contributed to high annual inflation, though the annual inflation rate of these eased, from 19.2% in the year to March 2023, to 19.1% in the year to April 2023.

The ONS found that the decrease in the annual rate for food and non-alcoholic beverages between March and April 2023 was driven by price movements from six of the 11 detailed classes and the largest negative contributions came from bread and cereals; fish; milk, cheese and eggs; and sugar, jam and honey.

Responding to the findings, UKH CEO Kate Nicholls said: “It’s encouraging that we have seen a more substantial drop in the overall rate of inflation, but it is worrying that food and drink inflation remains stubbornly high.

“This continued inflationary pressure shows there is a long way to go in this crisis yet. Food and drink are part of the core hospitality offering and it is becoming impossible for many to continue to absorb these costs.”

She added: “Sharp drops in energy, food and drink costs are urgently needed for businesses to remain viable and continue to serve communities across the country, create jobs and drive economic growth.”