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UK inflation falls to 2.7% amid slow down in food price increases


UK inflation fell to 2.7% in February with a slow down in food and transport price increases named as the largest downward contributors.

Prices of food and non-alcoholic drinks rose by 0.1% between January and February this year, compared to a rise of 0.8% a year ago.

The ONS report stated: “The downward effect was widespread within the broad group, with the largest single contribution coming from vegetables where prices fell in 2018 compared with a rise in 2017. The rise between January and February 2017 came amidst reports of shortages of certain greens and salad vegetables arising from adverse weather in southern Europe.”

Restaurants and hotels also had a large downward impact on inflation, as the price increases seen 12 months ago eased.

The fall in inflation, from 3% in January 2018, was measured by the Consumer Prices Index and revealed by the Office for National Statistics (ONS) this morning.

Earlier this month the CGA Prestige Foodservice Price Index revealed that foodservice price inflation had fallen to 2.5% in January, its lowest level since early 2017.

The fall, from 5.1% in December 2017, was largely attributed to seasonal trends driven by supply and demand, but was also thought to be an indication that some of the pressures that have beset the industry in the last couple of years could be easing.

Source: The Caterer