Commenting the recent fall in the UK’s inflation rate, Ed Bignold, head of travel, hospitality and leisure at UK-based management consultants, Alvarez & Marsal, said: “Data from the ONS shows that inflation is finally heading in the right direction in the restaurant and hotel sector, with inflation down to 7.6% in October from 8.6% in September. Inflation also continues to abate across the wider economy, falling to 4.7% in October, down from 6.3% in September.
“Falling food prices and stabilising wage growth have helped bring pricing down to more normal levels. Despite a period of high prices, consumer appetite seems to have held up.
“Our recent research shows that nearly half of Brits had increased their holiday budgets compared to before Covid-19, despite having used up most of their excess pandemic savings. Enjoyment of leisure time continues to rank among consumers’ top priorities, and they’re willing to cut back elsewhere to spend in hospitality and leisure venues.
“With base rate rises paused for the moment, and as we enter the festive period, this should be good news for the hospitality industry. Price growth is expected to continue to decline in the coming months, although businesses will need to remain vigilant and flexible when it comes to pricing as higher rates start to impact household budgets.”
Here at Hand Crafted Drinks Magazine we welcome the on-going fall in the annual rate of inflation, which is in part due to a fall in the price of energy.
However, the figures don’t reflect the fact that many households and businesses are still paying so much more for their energy than 12 months ago, despite the recent reduction in price.
The cost of petrol and diesel remains high – around £1.66 per litre for diesel – which continues to impact on the cost of food and drinks producers across the country.
We hope that in the coming weeks and months energy prices continue to fall, which should have a positive impact across the economy as a whole.