Price inflation forecast to rise as supply disruptions hit reopening

Food and drink supply markets have been hit by widespread distribution problems and a spike in demand following the reopening of hospitality, the CGA Prestige Foodservice Price Index reveals. Year-on-year food inflation stood at 1.6% in June, having levelled off at a time of year when it typically falls. The remaining months of 2021 are likely to see further increases in the level of food inflation, as sector demand returns towards pre-pandemic normality and extra supply costs and wage inflation feed into price increases.