Supermarket inflation outpaced restaurants last monthSupermarket inflation outpaced restaurants last month

Grocery prices rose 0.5% in January, over double the 0.2% increase in restaurant prices, according to new data released by the U.S. Bureau of Labor Statistics. However, inflation for food at home remains lower than the restaurant inflation rate year-over-year (1.9% vs. 3.4%).

The price jump within specific grocery categories is a large part of this shift. Eggs, for example, experienced a significant jump in price over the last month, increasing 15.2% compared to December and a whopping 53% over the past year. 

These increases in kitchen staples could make cooking at home less appealing for those focused on the numbers. Eggflation has even hit restaurants, with Waffle House adding an egg surcharge (and Cracker Barrel responding with a promotion on egg dishes).

While restaurant menu price inflation was considerably higher than grocery inflation for much of late 2023 and into 2024, the recent data indicates a possible rebalancing. 

During that period, grocers essentially held prices steady, and the wide inflation gap was considered a significant factor in reduced restaurant traffic. Restaurant operators have since been actively competing on value to attract customers, with large meal deal promotions in full swing.