After a significant period of instability, UK food inflation in 2025 is likely to be more settled. The annual rate of CPI food and non-alcoholic beverages inflation has fallen from March 2023’s high of 19.1% to a current annual rate of 3.0% in January 2025.
That said, the expert team at food procurement organisation, allmanhall advise that food prices are set to rise in 2025, something we’re already starting to see. The Institute of Grocery Distribution is forecasting 2025 food inflation of between 2.4% and 4.9%, with a mid-point of 3.4%.
allmanhall’s Managing Director, Oliver Hall, says: “Boarding school catering teams and Bursars should budget for 4% annual inflation during 2025 with optimism that it may be lower.”
Oliver continues, “Increases to the national minimum / living wage and employer National Insurance contributions will very quickly force food producers and distributors to recover costs. You can expect to see these increases from April 2025.”
allmanhall are forecasting April price increases of between 1.5% and 3% made up of ingredient inflation plus cost to serve increases owing to labour costs and are already in discussions with suppliers to minimise these for the benefit of caterers.
Whilst boarding school budget holders can realistically forecast around 4% for food inflation in 2025, there are things that you can do to make every pound of food spend go further and mitigate such price increases.
allmanhall’s Client Relations Director, Hayden Hibbert, previously head of a large catering team at an international school with over 250 boarders in the UK, suggests that “There are three key areas to focus on when it comes to coping with food inflation: supply chain management; operational processes, and menus.”
Contact allmanhall now to find out exactly how you can stay in control of food costs in uncertain times.
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