Source: CNBC 2023.4.12
According to CNBC report that Restaurant prices outpaced grocery prices on a 12-month basis for the first time since inflation started accelerating in mid-2021.
The price of food away from home is up 8.8% over the last year, while the price of food at home is up 8.4% in the same period, according to the Department of Labor.
The consumer price index has risen 5% over the last 12 months as inflation continues to cool. For the first time since inflation began accelerating in mid-2021, restaurant prices outpaced grocery prices on a 12-month basis, according to the Labor Department.
It’s a blow to the restaurant industry, which has already seen lagging traffic numbers as budget-conscious consumers cut back.
But most restaurants have instead chosen to hike prices to avoid a squeeze on their profit margins. As a result, consumers have been cutting back on their restaurant visits or spending less money when they do dine out.
Restaurant industry tracker Black Box Intelligence reported that the industry saw traffic growth in only two months — January and February — over the last year. Those two months lapped last year’s omicron Covid outbreaks, which led to a sharp drop in restaurant sales and traffic in early 2022.
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