# Menu price inflation outpaces wages

> Restaurant menu prices rose 3.5% year over year in September, but hourly wages grew just 3%.
- Title: Menu price inflation outpaces wages · Nation's Restaurant News
- Summary: Restaurant menu prices rose 3.5% year over year in September, but hourly wages grew just 3%.
- Keywords: menu price inflation, wage growth, restaurant prices, hourly wages, consumer spending, restaurant business, food, business, Menu, price, inflation, outpaces
- Source: Nation's Restaurant News — https://nrn.com/restaurant-finance/menu-price-inflation-is-up-and-wages-aren-t-keeping-pace
- Read time: 1 min
- Topics: menu price inflation, wage growth, restaurant prices, hourly wages, consumer spending, restaurant business, food, business
## 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.
## Key takeaway

Restaurant menu prices rose 3.5% year over year in September, while hourly wages grew 3% over the past year.