Food Costs

Average wholesale food prices registered a moderate increase in April, 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 – rose 0.6% between March and April. That represented the second increase in the last three months, with only a modest dip in March interrupting the upward trend.

The recent uptick in the food price index was driven by gains in prices for beef, seafood and fresh vegetables.

Although growth in the food price index accelerated in recent months, it was up just 0.1% on a 12-month basis. That was due in large part to elevated comparisons in early 2025, when prices were up nearly 10%. With those heightened comparisons having run their course, it is likely that we will once again start seeing year-over-year growth in the food price index.

As a result of the recent gains, wholesale food prices continued to rise further above their pre-pandemic levels. As of April 2026, the Producer Price Index for All Foods stood 35% above its February 2020 reading.   

While the overall food price index remained relatively flat on a 12-month basis, many individual commodities saw much larger price swings.

The price indices for eggs (-86.4%), butter (-25.0%), confectionary materials (-23.6%), refined sugar (-10.5%), milled rice (-7.1%), fresh fruit (-6.4%), pork (-3.8%) and cheese (-3.1%) declined from their year-ago levels.

In contrast, producer prices for fresh vegetables (97.8%), unprocessed finfish (60.3%), fats and oils (23.7%), coffee (20.0%), beef and veal (14.2%), soft drinks (4.9%) and tea (2.9%) stood well above their April 2025 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.