Hospitality Industry: Inflation
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the impact of food inflation on hospitality businesses.
Answered by Kate Dearden
Data from the Office for National Statistics (ONS) shows that in the 12 months to January 2026 CPI food and non-alcoholic beverages price inflation stood at 3.6%, down from 4.5% in the 12 months to December 2025. Overall CPI inflation was 3.0% in the 12 months to January 2026, compared with 3.4% in the 12 months to December 2025, and remains 1 percentage point above the Bank of England's 2% target.
We are committed to ensuring that regulation works better for food businesses. The new Food Inflation Gateway will assess the impact of proposed Government regulations on food businesses and food prices; while also giving firms a single, clearer line of sight on upcoming regulatory changes so they can plan with greater confidence.
In addition, the Government has introduced a series of measures to help ease cost pressures across the sector, including permanently lower business rates multipliers for eligible retail, hospitality and leisure properties. We will continue to work closely with the sector and across Government to support resilience and help hospitality businesses navigate ongoing cost challenges.
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