Food Costs

Wholesale food prices registered a modest increase in June, 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 – edged up 0.3% between May and June.

June’s gain came on the heels of a stronger 0.5% increase in May. The uptick during the last two months followed sharp declines in both March (-2.2%) and April (-1.5%), which had represented a temporary break from the recent reacceleration of food inflation.

Although food prices moderated somewhat in recent months, the food price index remained 4.7% above year-ago levels. That was down from the strong 9.7% increase during the 12 months ending in February, but it extends the period of elevated food costs that continues to pressure the bottom line.

Wholesale food prices also continue to climb well above their pre-pandemic levels. As of June 2025, the Producer Price Index for All Foods stood 36% above its February 2020 level.   

While the overall food price index remains above year-ago levels, trends were mixed on the individual commodity level.

Producer prices for coffee (31.8%), eggs (19.5%), unprocessed finfish (14.0%), confectionary materials (12.5%), fresh fruit (11.1%), poultry (9.6%), beef and veal (9.3%) and pork (6.0%) stood above their June 2024 levels. 

At the same time, there was a degree of pricing relief for some commodities in recent months. The price indices for fresh vegetables (-28.6%), butter (-19.9%), refined sugar (-6.3%), milled rice (-5.8%), unprocessed shellfish (-4.8%) and wheat flour (-2.8%) were down from year-ago levels.

While food costs remain a headwind overall, the degree to which restaurants are experiencing any pricing relief depends on the menu mix of each individual operation.