Food inflation is an ongoing challenge for all businesses dealing with supply chains, procurement and ultimately the sale of food and drink to customers. Whilst the Consumer Price Index may be far lower than the staggering 11% peak we saw back in the autumn of 2022, the figure has not consistently remained under the 2% target for some years now.
In the year to May 2026, the CPI stood at 2.8% – with global geopolitical instability and climate disruption continue to wreak havoc on everything from fuel costs and supply routes to yield sizes.
With energy, freight, labour and commodity fluctuations continuing to impact purchasing decisions, and seasonal market conditions more difficult to predict, procurement teams must be ready to respond to sudden supply shortages and price spikes.
Rather than relying on traditional seasonal buying patterns, forecasting, supplier collaboration, flexible sourcing strategies and close monitoring must all be utilised in order to meet the food inflation challenge.
Menu engineering
While maintaining a high-quality offering is pivotal, regularly reviewing what’s on the menu can support businesses with their long-term sustainability, as well as ensuring the popularity and cost-effectiveness of their meals. By focusing primarily on ingredients which are low-cost but popular (and therefore high-value) and considering changing those which are more expensive and not as sought-after, this can help procurement teams to make effective decisions.
Supply chain
It’s key to form partnerships with suppliers who can offer local and seasonal ingredients, reducing the cost associated – for example – with higher fuel costs. Linking in with experts who have greater buying power also enables procurement teams to source better deals than they could on their own, especially for smaller independent businesses who may have no need to buy in bulk.
Tech time
Making use of the vast range of technology on offer can help in a number of areas, whether it’s tracking stock levels, working to minimise waste, or having a greater insight into all of the data needed to make smart purchasing choices. However, it’s worth noting that the best possible combination is having the right tech and the right team on your side – and the insight experts can bring to the equation supports the data analysis and tracking that digital tools are able to undertake.
Seasonal commodities
In our summer Market Watch issue, our procurement team have laid out the positives and negatives associated with eight key commodities, including everything from dairy and meat to fresh produce and even packaging – as well as handy tips for each category.
