Customers are seeing prices for beef and other barbecues rise. BBQ joints customers are seeing price increases in their favorite diners as eateries see prices for meats and other products rise.
Higher prices at BBQ restaurants due to inflation
According to Fox Business, a restaurant called Arthur Bryant’s in Kansas City Mo, the 12 oz. brisket sandwich has risen from $10.95 late last year to $15.95 in January and is now at $17.95. That’s a 61 percent increase in less than six months.
Spikes in meat and food prices had prompted eateries to revise menu prices for commodities such as beef, pork and poultry. The consumer price index (CPI) for meat, poultry, fish and eggs rose by 1.2 percent in February. The meat, poultry, fish and egg index rose 13.0 percent from last year, while the beef index rose 16.2 percent. The other major food group indices of supermarkets also rose last year, with increases from 5.2 percent (dairy products and related products) to 8.2 percent (other food at home).
Inflation fuels food prices
The food home index rose 8.6 percent in the past 12 months, the largest increase in 12 months since the period ending April 1981. Food prices rose across the board in February. Prices for fruit and vegetables saw the largest increase, rising 2.3 percent, the largest monthly increase since March 2010. While prices for dairy and related products rose by 1.9 percent, the largest monthly increase since April 2011. The other major supermarket food group indices also rose last year, with increases ranging from 5.2 percent (dairy and related products) to 8.2 percent (other food at home).
What is fueling inflation?
The reasons attributed to the spikes come from the supply side due to rising costs for labour, machinery, fuel, fertilizer, crop seeds and other inputs. Increasing production pressures with rising costs have prompted producers to share some of the costs with wholesalers and retailers.
In an effort to cushion the effects of inflation, the US Federal Reserve approved a 0.25 percent rate hike in February. The increase came after more than three years since the last rate hike to address rising inflation, which hit a 40-year high of 7.9% in February.
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