Restaurant and hotel prices rise as inflation holds steady at 3.8%

The cost of eating at restaurants and hotel stays rose slightly in the last month as UK inflation remained unchanged at 3.8% in September, according to the latest data from the Office for National Statistics (ONS).

Prices within the restaurants and hotels category increased by 3.9% in the year to September, up marginally from 3.8% in August. On a monthly basis, prices in the sector rose by 0.8%, compared with a smaller increase of 0.6% during the same month last year. 

This continued upward movement means that the hospitality industry remains one of the few areas still exerting upward pressure on the overall inflation rate, even as price growth across other sectors shows signs of stabilising.

The ONS noted that while food and non-alcoholic drink prices have largely steadied, higher costs in restaurants, cafés and accommodation services continue to influence the broader consumer price index. 

This has been attributed to the category’s sustained inflation reflecting lingering cost pressures on hospitality operators, including energy and wage costs.

The data follows a period of relative stability in inflation after steep declines earlier in the year. Economists suggest that the latest figures indicate that services-related inflation, including hospitality, remains “stickier” than goods inflation, complicating the Bank of England’s efforts to bring overall price growth back to the 2% target.

For hotels and restaurants, the modest price rise underscores both resilience in consumer demand and ongoing cost challenges heading into the final quarter of the year.