Menu prices
Menu prices rose 6.5% during the last 12 months
Growth in menu prices continued to slow in August, according to data from the Bureau of Labor Statistics (BLS). The Consumer Price Index for Food Away from Home increased 6.5% between August 2022 and August 2023. That marked the fifth consecutive month of decelerating growth and the smallest 12-month increase since January 2022.
The deceleration in grocery prices was even more significant in recent months. The Consumer Price Index for Food at Home rose 3.0% between August 2022 and August 2023 – the smallest 12-month increase since August 2021. The recent moderation was a significant departure from a year-long period of double-digit gains – including a peak increase of 13.5% in August 2022.
Overall consumer prices increased 3.7% between August 2022 and August 2023 – the second consecutive increase after falling to a 27-month low of 3.0% in June. The recent acceleration was due largely to an increase in gas and energy prices.
The core CPI (which excludes food and energy prices) increased 4.3% between August 2022 and August 2023. That represented the fifth consecutive month of decelerating growth and the smallest 12-month increase since September 2021. 
Within the food-away-from-home sector, growth in limited-service menu prices outpaced the fullservice segment in recent months. Prices for limited-service meals and snacks increased 6.7% between August 2022 and August 2023. That was down from the recent peak of 8.2% in April, which represented the strongest 12-month gain since the beginning of this data series in 1997.
Fullservice menu prices rose 5.2% between August 2022 and August 2023. That was well below the 9.0% gains posted during 2022 and represented the smallest 12-month increase since September 2021.
Elsewhere in the food-away-from-home sector, the price index for food from vending machines and mobile vendors jumped 15.6% between August 2022 and August 2023. That represented the 11th consecutive month of double-digit gains on a 12-month basis.
Meanwhile, the price index for food at employee sites and schools soared 57.6% between August 2022 and August 2023. This component had been significantly dampened for much of 2021 and 2022, which BLS attributed to widespread free school lunch programs. As these programs expired, many students went from paying nothing to paying regular prices for school lunches. This is resulting in sharp year-over-year increases in this price index. Even though this component holds less than a 2% weight in the overall food-away-from-home index, the recent strong growth rates are inflating the overall Consumer Price Index for Food Away from Home. This will continue until the base effects run their course.
On a regional level, the Northeast (7.0%), South (6.7%) and West (6.7%) regions posted the strongest menu price increases between August 2022 and August 2023. Average menu prices in the Midwest region rose at a 5.8% rate during the last 12 months.
Track more economic indicators and read more analysis and commentary from the Association's chief economist Bruce Grindy.