Eseandre Mordi
⬤ U.S. food prices took a significant leap in December 2025, with the Food at Home Consumer Price Index (CPI) rising 2.7%—a 38 basis point acceleration from November's growth. The numbers paint an even starker picture for restaurant-goers, as Food Away from Home CPI climbed 4.1%, making dining out notably more expensive than cooking at home.
⬤ These price jumps come as consumers grapple with mounting inflation concerns. The 4.1% surge in restaurant costs particularly stands out, driven by labor shortages and ongoing supply chain issues. Whether families are shopping at grocery stores or eating out, they're feeling the pinch—though restaurants are bearing the brunt of the increases. Despite these pressures, tariffs haven't significantly impacted food retailers.
⬤ December's figures continue a clear upward trajectory in food costs that's been building throughout the year. The 2.7% grocery price increase adds to persistent cost-of-living pressures, especially for households doing most of their food shopping. Meanwhile, that 4.1% restaurant price jump reflects changing market dynamics where eating out has become increasingly expensive.
⬤ Food inflation looks set to remain a major economic factor in coming months. Rising prices squeeze consumer purchasing power while reflecting broader inflationary pressures across multiple sectors. With supply-side constraints, higher labor costs, and strong dining demand as the primary drivers—rather than tariffs—these food price increases could stick around longer than many expect.
Eseandre Mordi
