Inflation is hitting different parts of the industry in opposite ways — full-service prices are surging, even as limited-service inflation cools to its lowest level since the pandemic.
This article first appeared in Nation’s Restaurant News.
The Consumer Price Index rose 2.9% for the 12 months ending August, after rising 2.7% in July, according to federal data released Thursday morning. This marked the highest inflationary uptick since January as many of President Trump’s tariff policies went into effect in August.
Food overall was up 3.2% versus the same period last year, with food at home (grocery/supermarket) prices up 2.7% and food away from home (restaurants) up 3.9%. The index for full-service meals rose 4.6%, accelerating from 4.4% in July, and marking the fastest annual pace since September 2023, according to the National Restaurant Association.
The August index for limited-service meals rose 3.2%, versus 3.3% in July, marking a post-pandemic low. This suggests the intensifying value environment is moving the needle toward lower menu prices. However, according to Revenue Management Solutions data, traffic in the limited-service category was down 1.2% in August versus August 2024.
Regionally, the South posted the fastest menu price growth in August, with prices up 0.4% during the month and 4.1% year-over-year. By comparison, annual growth was up 4% in the West, 3.9% in the Northeast, and 3.6% in the Midwest, according to the association.
August’s grocery prices outpaced menu prices for the first time since March, up 0.6% month-over-month, versus restaurant prices, which were up 0.3%. All six major grocery food group indexes ticked up in August, including meats, poultry, eggs, and fish, which rose 5.6% over the last 12 months. In total, food-at-home inflation is at its highest level since August 2023.
Read the full article at Nation’s Restaurant News.Â
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