Food Costs

Average wholesale food prices rose modestly in March, according to preliminary data from the Bureau of Labor Statistics.

The Producer Price Index for All Foods – which represents the change in average prices paid to domestic producers for their output – edged up 0.1% between February and March. That followed a strong 2.2% increase in February – the largest single-month jump since February 2025.

Prior to trending higher in February and March, average wholesale food prices had declined in 
three of the previous four months – a period during which the food price index fell more than 4%.

Despite the gains during the last two months, the food price index continued to trend lower on a 12-month basis. That was due in large part to elevated comparisons in early 2025, when prices were up nearly 10%. Average wholesale food prices stood 1.5% below their year-ago level in March, the fourth consecutive decline on a 12-month basis.

Even with the recent declines, wholesale food prices remain well above their pre-pandemic levels. As of March 2026, the Producer Price Index for All Foods stood 34% above its February 2020 reading.   

While the overall food price index continued to decline on a 12-month basis, trends were mixed on the individual commodity level.

The price indices for eggs (-83.6%), butter (-19.3%), confectionary materials (-11.5%), refined sugar (-10.9%), fresh fruit (-10.4%), milled rice (-7.6%), cheese (-5.6%) and milk (-3.9%) fell sharply from their year-ago levels.

At the same time, prices for several commodities continued to rise, particularly proteins and beverages. Producer prices for fresh vegetables (90.4%), coffee (20.2%), beef and veal (19.7%), fats and oils (16.2%), shellfish (5.5%), soft drinks (5.0%), pork (4.4%), tea (2.9%) and processed poultry (2.5%) stood above their March 2025 levels. 

With the direction of food costs diverging across commodities, the degree to which restaurants are experiencing pricing relief depends on the menu mix of each individual operation.