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In the UK our domestic food costs have soared & it’s exactly the same in catering. Expensive basics have increased like bread, cereals and chocolate which have caused the overall increase to 19.1% in the year to March.  This is the sharpest 12-month rise since August 1977.  It helps to understand why we are all feeling the squeeze, here’s a summary:

1. Poor harvests fruit, vegetables and sugar, prices have risen after poor harvests in Europe and North Africa and so there is reduced availability.
2. Importing goods has been more expensive because the £ is weak.
3. Rising transport costs are making imports more expensive.
4. Ukraine war increased energy bills, as Europe weens itself off Russian gas, this has forced producers to hike their prices, which have filtered through to everyday items like bread & it’s also disrupted food exports from Ukraine, especially grain.
5. Brexit, the increased costs of the movement of goods in and out of the UK.
 
Average price increases over the 12 months to March.
- Olive oil 49.2%, Sugar 42.1%, Whole milk 37.9%, Eggs 32.0%, Bread 18.9%

Food Cost