And unfortunately for those hoping to curb spending by turning to home cooking, grocery prices are also at record highs: They jumped 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the largest 12-month increase since December 2008. Beef had the most dramatic increase with a 20.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} spike in prices.
The sharp increases underscore the fact that restaurants and food makers are not immune to supply chain and labor pressures contributing to pricing increases across the board.
Yet they’ve found customers are willing to spend more. In fact, restaurants have been raising prices as their own food and labor costs rise, and so far, they say, consumers have accepted the hikes.
Beyond restaurants, food manufacturers and grocers have faced higher costs for commodities, labor and transportation. Those costs have escalated further in recent months, leading manufacturers to pass some of them on to their retail customers — who in turn charge consumers a portion of those increases.
That’s all allowed companies to pull back on or eliminate discounts, because demand is strong and they don’t want to run out of their limited supplies.
What got more expensive in November
While some food prices stayed flat or even fell from October to November, other items got more expensive in the period, according to the consumer price index.
Lettuce prices climbed 6.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and fresh fruit went up 2.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on a seasonally adjusted basis. Oranges, including tangerines, rose 2.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. At the opposite end of the spectrum, treats like fresh coffeecakes and donuts jumped 3.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in price.
Meat prices also continued to tick up: Pork prices grew 2.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with breakfast sausages up 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and hot dogs 2.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Pork roasts, steaks and ribs rose 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
— CNN Business’ Nathaniel Meyersohn and Anneken Tappe contributed to this report.
