For the first time in seven months, the UK inflation rate has dropped to 3.6% according to the latest ONS figures. While this is positive news, the easing of inflation is still having effects across essential costs. Pressures remain especially when looking at food prices, energy costs and the wider economic picture for care homes. 

The slight improvement has been driven largely by energy prices rising more slowly than they did during the same period last year. Despite this, inflation is still above the Bank of England’s 2% target and many can feel the underlying costs affecting daily care.

One of the major concerns is food pricing. Having risen again in October, prices are an average of 4.9% higher across all food groups from bread to potatoes and sugar. Care homes are working hard to manage tight catering budgets, but this means absorbing price changes that remain unpredictable and difficult to plan around.

For many, this means being more strategic than ever in the kitchen. With elevated shopping bills and fluctuating ingredient costs, often influenced by climate change and weather conditions, menu planning is becoming increasingly challenging. To combat this, homes need to ensure they’re getting the best value possible through regular benchmarking, reviewing supplier contracts and tightening waste management processes. It is important to portion plan and ensure tighter stock management to help stretch budgets while you can while still prioritising resident dignity, nutrition and quality.

The Autumn Budget will play a key role in shaping what comes next. Areas to watch include energy bill support, National Living Wage impacts, tax and spending changes, and the potential for an interest rate cut in December.

For now, inflation may be easing but higher food prices mean care homes still face cost pressures that require proactive procurement and cost effective operational choices.