Meals at full-service restaurants cost 4.3 percent more than a year ago and prices at fast food outlets soared by 6.6 percent, said the Labor Department’s monthly report on inflation. The increases were the largest for either category since record-keeping began on them in 1996, said the Bureau of Labor Statistics on Wednesday.
The overall U.S. inflation rate of 5.4 percent in July was unchanged from June, after increasing for five months in a row. The increases reflect the robust reopening of the economy, parts and labor shortages, and the low level of economic growth last year due to the pandemic.
Food accounts for nearly 14 cents of each $1 in consumer spending, second only to housing costs. The Bureau of Labor Statistics said food prices were 3.4 percent higher in July than a year earlier. Grocery prices were up by 2.6 percent, led by higher meat prices, and “food away from home” cost 4.6 percent more. Fast food and restaurant meals are the bulk of spending on food away from home.
The BLS report is available here.