Hotel, restaurant price rise hits 31-year high

By Netpal Travel Bureau

Price inflation in hospitality businesses rose to the highest level for more than 30 years as operators were forced to pass on surging costs to customers.

Hotel and restaurant price inflation hit 11.4% in the year to December 2022, the biggest rise since September 1991.

This marked an increase on the 10.2% rate of inflation recorded across the sector in November, according to the Office for National Statistics (ONS).

Overall Consumer Price Index (CPI) inflation fell to 10.5% in the year to December, down from 10.7% in November.

But prices of food and drink rose for the 17th consecutive month to a 45-year rate high of 16.9%.

This was largely driven by a 4.1% inflation in the cost of milk, cheese, and eggs.

The cost of sugar, jam, honey, syrups, chocolate and confectionary, mineral waters, soft drinks and juices also rose but price growth slowed for bread and cereals.

Grant Fitzner, chief economist at the ONS, said: “Inflation eased slightly in December, although still at a very high level with overall prices rising strong during the last year as a whole.

“Prices at the pump fell notably in December, with the cost of clothing also dropping back slightly

“However, this was offset by increases for coach and air fares as well as overnight hotel accommodation. Food costs continue to spike with prices also rising in shops, cafes and restaurants.”