From Nation's Restaurant News · · 1m 10s
Menu price inflation outpaces wages
Restaurant menu prices rose 3.5% year over year in September, but hourly wages grew just 3%.
In brief
Restaurant menu prices rose 3.5% year over year in September, but hourly wages grew just 3%. Restaurant menu prices rose 3.5% year over year in September, while hourly wages grew 3% over the past year. Originally reported by Nation's Restaurant News.
Menu price inflation rises
Restaurant menu prices rose 3.5% year over year in September, according to federal data.
Wage growth lags
Hourly wages grew just 3% over the past 12 months, according to the U.S. Bureau of Labor Statistics.
Inflation comparison
Limited-service restaurant prices rose 3.2%, while full-service prices rose 3.8% year over year.
Consumer spending drops
The combination of wages and prices means consumers’ spending power fell by 0.7% over the past year.
Market reaction
The inflation data sent stocks down more than 1% on Wednesday and could mean more interest rate increases.
Consumer sentiment weakens
Consumer sentiment declined 13.6% year over year in October, according to the University of Michigan Survey.
Restaurant traffic falls
Quick-service restaurant sales rose 0.6%, but traffic declined 2.6% in the third quarter.
Wage gap widens
The gap between rising menu prices and stagnant wages puts pressure on restaurant chains.
The big picture
Restaurant menu prices rose 3.5% year over year in September, while hourly wages grew 3% over the past year.
