Research
August 13, 2026
Food Costs
Wholesale food prices fell sharply in July
Restaurant operators got a partial reprieve from some elevated commodity prices in July, as the wholesale food price index registered a sizable decline.
The Producer Price Index for All Foods – which represents the change in average prices paid to domestic producers for their output – fell 1.2% between June and July. That’s according to preliminary data from the Bureau of Labor Statistics.
July represented the largest monthly decline since January (-2.0%) and followed four increases in the previous five months. The food price index rose nearly 3% during that five-month period.
July’s downturn in the food price index was driven by declines in producer prices for fresh vegetables (-40.1%), beef and veal (-4.1%) and pork (-2.2%). Though despite the sharp decline in July, wholesale prices for beef and veal remained well above year-ago levels.
As a result of the sharp decline, average wholesale food prices stood 2.1% below their year-ago level in July. That marked the first time in four months that the food price index declined on a 12-month basis.
Despite the July decline, wholesale food prices remained well above their pre-pandemic levels. As of July 2026, the Producer Price Index for All Foods stood 34% above its February 2020 reading.
While the overall food price index declined on a 12-month basis, pricing trends across individual commodities varied significantly.
Producer prices for unprocessed finfish (44.8%), fats and oils (18.2%), beef and veal (7.8%), coffee (6.6%), soft drinks (5.3%) and fresh fruit (5.0%) stood well above their July 2025 levels.
In contrast, the price indices for eggs (-79.0%), butter (-36.5%), fresh vegetables (-22.7%), pork (-14.8%), confectionary materials (-13.9%), refined sugar (-11.0%), processed poultry (-6.7%), unprocessed shellfish (-6.7%), milled rice (-4.3%) and cheese (-3.3%) declined from their year-ago 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.
The Producer Price Index for All Foods – which represents the change in average prices paid to domestic producers for their output – fell 1.2% between June and July. That’s according to preliminary data from the Bureau of Labor Statistics.
July represented the largest monthly decline since January (-2.0%) and followed four increases in the previous five months. The food price index rose nearly 3% during that five-month period.
July’s downturn in the food price index was driven by declines in producer prices for fresh vegetables (-40.1%), beef and veal (-4.1%) and pork (-2.2%). Though despite the sharp decline in July, wholesale prices for beef and veal remained well above year-ago levels.
As a result of the sharp decline, average wholesale food prices stood 2.1% below their year-ago level in July. That marked the first time in four months that the food price index declined on a 12-month basis.
Despite the July decline, wholesale food prices remained well above their pre-pandemic levels. As of July 2026, the Producer Price Index for All Foods stood 34% above its February 2020 reading.
While the overall food price index declined on a 12-month basis, pricing trends across individual commodities varied significantly.
Producer prices for unprocessed finfish (44.8%), fats and oils (18.2%), beef and veal (7.8%), coffee (6.6%), soft drinks (5.3%) and fresh fruit (5.0%) stood well above their July 2025 levels.
In contrast, the price indices for eggs (-79.0%), butter (-36.5%), fresh vegetables (-22.7%), pork (-14.8%), confectionary materials (-13.9%), refined sugar (-11.0%), processed poultry (-6.7%), unprocessed shellfish (-6.7%), milled rice (-4.3%) and cheese (-3.3%) declined from their year-ago 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.