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Restaurant prices are more steady than grocery store prices

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The all-food CPI reflects price movements at supermarkets and other food-at-home retailers as well as price changes at fast food outlets, restaurants, and other away-from-home places. While prices in these two markets typically move in the same direction, food-away-from home prices are less volatile. Inputs such as wages for restaurant workers, rents, and advertising play a larger role in shaping away-from-home prices than at-home prices. Costs for these inputs rise and fall less sharply than commodity and fuel prices, lessening price volatility for food away from home.

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Last updated: Tuesday, February 11, 2014

For more information contact: Richard Volpe

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