Figures from the ONS yesterday (15 February), revealed that inflation fell to 10.1% in January, from its high of 11.1% last October.

There was also a slight slowdown in price rises at restaurants and cafés, however Kate Nicholls, chief executive, UKHospitality put the drop in the cost of visiting venues in January down to “venues squeezing every drop out of their margins in a bid to attract custom, in order to stay afloat after a Christmas hit by rail strikes and amid the annual New Year drop in consumer spend”.

“The cost of energy alone is enough to keep much of the sector teetering at the cliff edge. The substantial reduction in energy support in April, as well as continued labour shortages, will increase the sector’s vulnerability, constrain growth and likely add to further price rises.”

The trade body is calling on Chancellor Jeremy Hunt to take action in the spring Budget next month to tackle the root causes of inflation in hospitality, allowing the sector to help reduce inflation.

The largest downward contribution to the change in the Consumer Prices Index between December 2022 - when it was 10.5% - and January 2023, came from transport, restaurants and hotels, with rising prices in alcoholic beverages and tobacco making the largest partially offsetting upward contribution to the change, according to the ONS. 

Inflation in restaurants and hotels was 10.8% in January 2023, down from 11.4% in December 2022.

CPI inflation rates for the restaurant and hotel sector found inflation had fallen from 11.3% in December 2022 to 10.8% in January 2023.