Will food prices fall? The soaring costs of food continues to show no immediate signs of slowing down.
The general consensus of financial institutions, including the Bank of England, seems to be that the rate of food price inflation will fall in the latter part of 2023 — along with the general rate of inflation. However, someunderlying factors affecting food inflation, including extremes of climate and wars across parts of the world,remain unpredictable; going forward it remains to be seen how much those factors these influence prices.
On a more positive note, fuel and energy prices have eased in recent months. In the food-chain, both retail and wholesale, it takes time for these elements, which have direct bearing on production and distribution costs, to influence the rate of food inflation for end-users.
Overall, reductions in food prices are generally considered to be unlikely — although a slowing-down in the rate of inflation, on a month-by-month basis over forthcoming months, will be most welcome.
All that said, we should still expect to see changes in market prices, both upwards and downwards, in the pricing of some fresh foods as those products come into season, along with more plentiful supply and wider availability.
Taking advantage of product seasonality, and making some adjustments to menus to accommodate products in season, makes sense on several counts. UK produced fresh products offer nutritionally-sound options, with seasonal price advantages and, of course, lower ‘food-miles’.
Stay informed about the fluctuating food prices with CaterBuy. While we can’t predict the future, we can help you navigate it. Our focus is on providing value, leveraging product seasonality, and offering nutritionally-sound options. CaterBuy – your partner in managing food costs effectively.
- Bank of England’s Monetary Policy Report – February 2023: This report discusses the general economic conditions and inflation rates, including food price inflation.