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CLH Digital - Issue #160

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THE LEADING PUBLICATION FOR THE HOSPITALITY SECTOR & LICENSED TRADE Issue 160

www.CLHNews.co.uk

CLHNews

CLHNews

CLHNews

Foodservice Inflation Falls but Interest Rate Rise Will Have “Significant Impact”

The hospitality and licensed on trade sector have received a small amount of relief with inflation falling below 20%, to 18.9% for the first time in five months, this has however been offset by a rise in interest rates this week. The fall in foodservice inflation is the fourth consecutive fall in year-on-year inflation and the first time in five months that the rate has dipped below 20%. While prices increased by 0.7% month-on-month between February and March, there are clear signs that inflation is steadily slowing after enormous challenges

throughout the last year. The downward trend has been driven by an easing of prices in key commodity markets. The Dairy and Oils & Fats categories within the Foodservice Price Index both recorded month-on-month deflation on the back of improved availability, aided by increased milk production and falling edible oil prices. Only two of the Index’s ten categories reported month-on-month inflation of 2% or more.

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