Tags: dining | Restaurant | Inflation | soar | gas | food | prices

Restaurant Inflation Set to Take Off This Year

Tuesday, 17 May 2011 08:18 AM

Menu prices have been climbing while portions have been getting smaller, a trend that will only intensify in 2011, according to U.S. Department of Agriculture.

Rising food and gasoline prices are to blame.

Price increases have been hovering in the 1 percent range, although the government figures show that by the time 2011 ends, restaurant prices will have jumped by 4 percent or even higher, USA Today reports.

menu200getty.jpg
It's expensive to eat out as menu prices keep rising.
(Getty Images photo)
"We've really had to tighten the belt back in the kitchen … making sure we're not wasting any product," says Steve Lucey, co-owner of Six Paupers Tavern & Restaurant in Hockessin, Del.

In 2010, restaurant prices rose 1.3 percent, the lowest annual increase since 1955, according to the USDA.

Yet since March 2010, beef prices have risen 12.2 percent, pork prices are up 11.2 percent and poultry 2.2 percent, all of which will continue climbing.

Core inflation rates, inflation rates stripped of volatile food and energy costs, still remain low.


They rose only 0.2 percent from March, and the 12-month increase, at 1.3 percent, was at its highest level since February 2010.

Those figures suggest the Federal Reserve won't rush to raise interest rates, as inflation is stemming from high food and gasoline prices and not due to a more fundamental aspect of the economy, such as wages rising too fast.

"This is not enough to prompt an immediate response from the Federal Reserve, but they're certainly watching this," says Dana Saporta, an economist at Credit Suisse in New York, according to Reuters.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Menu prices have been climbing while portions have been getting smaller, a trend that will only intensify in 2011, according to U.S. Department of Agriculture. Rising food and gasoline prices are to blame. Price increases have been hovering in the 1 percent range,...
dining,Restaurant,Inflation,soar,gas,food,prices,eating,out
264
2011-18-17
Tuesday, 17 May 2011 08:18 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved