Headline CPI Slows While Restaurant Prices Soar
Michael Lukianoff
Chief Executive Officer & Founder | Analytics, Strategy, Pricing
The March inflation report delivered more good news on headline inflation beating estimates at 5.0%. Restaurants, however, are bucking the trend - heading in the opposite direction for the second straight month hitting the highest overall FAFH CPI since August 1981 at 8.8%. Full-Service CPI stayed about level at 8.0% and Limited-Service CPI jumped to 7.9%, the highest level since Feb 2022. Food at Home also took a leg up after moderating the past few months, coming in at the highest level since January 2022.
Moderating energy prices have gone a long way toward helping keep CPI on a better track, but OPEC’s surprise announcement last week that it was cutting back production, and the subsequent spike in gas prices could put a damper on the inflation outlook over the next several months. OPEC says the production cuts are in anticipation of a global economic slowdown, but if it fans the flames of inflation it will certainly extend the Fed’s interest rate cycle further and lead to a deeper downturn. #extropy360 #signalflare.ai #restaurantpricing #pricing #cpi
Co-Founder @ <empowered> | CEO | CTO | Creative Startup Entrepreneur | Technology SME | Software Architect | Decision Maker | Conscious Thinker | AI SME
1yWonderful insight. New decisions to be made.
President Growth Partners / CMO / Restaurant Consulting / Topline Growth / Restaurant Marketing
1yVery interesting Michael. Thanks for sharing.
President Location Matters Inc.
1yIs it possible that we’re seeing these high numbers for food away from home because Restaurants don’t tend to reduce their pricing once they increase their pricing? it’s not like gas prices that go up and down…or other commodities.
CEO / President of Mirus Restaurant Solutions
1ythanks for sharing, Michael