Gap Between Menu And Grocery Store Prices Widens

Wholesale food prices at all three stages of demand fell again in October, according to Producer Price Index data from the Bureau of Labor Statistics, released Nov. 16. Prices at the final demand stage have fallen three of the past four months. They were off 0.8% in October after rising 0.5% in September. The overall PPI was flat in October and is up 0.8% for the past 12 months.

Food prices at earlier stages of demand were also down last month. At the processed intermediate demand stage, foods and feeds prices fell 0.7%. At the unprocessed stage, foodstuffs and feedstuffs were down 5.7%.

Meanwhile, on the consumer price level, menu prices rose again, up 0.1%, while food prices at the retail level continued to fall, down 0.2%. Menu prices have risen 2.4% during the past year while grocery-store food prices have fallen 2.3%. The gap is pegged as one reason why restaurant chain same-store sales and traffic have fallen this year. The overall Consumer Price Index rose 0.4% and is running 1.6% higher than a year ago.