Research
March 18, 2026

Food Costs

Wholesale food prices rose sharply in February

The brief downward trend in wholesale food prices ended abruptly in February, 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 – jumped 2.2% between January and February. That followed sharp declines in three of the previous four months – a period during which the food price index dropped more than 4%.

February’s increase in the food price index – the largest single-month jump since February 2025 – was driven by sharp gains in prices for fruits and vegetables, eggs, butter and seafood.


Despite the strong increase in February, the food price index continued to trend lower on a 12-month basis. That was largely due to elevated comparisons in early 2025, when prices were up nearly 10%. Average wholesale food prices stood 3.9% below their year-ago level in February, the largest 12-month decline in more than two years.

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


While the overall food price index declined in recent months, trends were mixed on the individual commodity level.

The price indices for eggs (-86.4%), butter (-34.2%), confectionary materials (-14.1%), refined sugar (-11.0%), cheese (-8.7%), fresh fruit (-8.5%), milled rice (-7.9%), milk (-7.3%) and wheat flour (-3.7%) 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 (87.5%), unprocessed finfish (45.2%), coffee (25.8%), beef and veal (13.0%), shellfish (10.5%), fats and oils (8.2%), soft drinks (5.7%), processed poultry (4.7%), tea (3.1%) and pork (1.2%) stood above their February 2025 levels. 

Until wholesale prices start trending lower across a broad range of commodities, food costs will continue to be a headwind for many restaurants.