Food costs – which have rocketed by 14% in the past year – are starting to slowdown, according to research from foodservice analysts Horizons. In August annualised food costs rose by 0.8%, compared with an increase of 3.1% in July. This slowdown in the rate of growth is due to several factors – including good harvests in some commoditities, the stability of the pound against the Euro and that world commodity prices are due to be adjusted. Peter Backman, managing director of Horizons, said: “While foodservice operators increased their prices to consumers slightly in August, since the beginning of the year they have raised prices by one-third of the level of food price inflation. “This means that operators have clearly been absorbing much of these increased costs to avoid frightening off increasingly edgy customers with significant price rises. “Despite food costs levelling out, operators still need to do what they can to mitigate cost increases such as reducing portion sizes, buying more cost-effectively and using cheaper cuts of meat, for example.” Backman added the run up to Christmas could see consumers tightening their belts even further.