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Eating out prices rise at twice the rate of food in shops

(30 December 2005 12:01)
Food

Prices at restaurants and other foodservice outlets have increased at more than twice the rate of food prices in general in the last five years, says a study by market analysts Horizons.

Inflation in eating out prices has shown an aggregate growth of 16% since the start of 2001, it reports.

This compares with overall inflation of 6% and food price inflation of 7%, according to Horizons.

Despite the increased cost, consumers have continued to spend the same proportion of their income on eating out. Eating out accounted for 8.4% of spending in 2001-03 and is now at 8.3%.

Food purchases by consumers in the foodservice sector grew from £24.3b in 2001 to an estimated £26.6b in 2005 - an increase of £2.3b.

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But once inflation is taken into account, the increase is just £600m, or 2.5%.

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3rd December 2008