Menu prices increased for the fifth consecutive month in June, with a 0.4% rise. Inflation accelerated to 2.7% annually, up 0.3% from May. Grocery prices also rose by 0.3%, with coffee, beef, and fruits and vegetables seeing increases. Menu prices are up 3.8% over the past 12 months.

Full-service meals saw a 4% increase, while limited-service meals rose by 3.5% year-over-year. The West had the fastest menu price growth at 4.1%, followed by the South at 3.9%. Restaurant prices have outpaced grocery prices for 27 consecutive months, with the gap now favoring grocery stores by 140 basis points.

Despite the ongoing increase in menu prices, inflation is gradually becoming less of a problem for the restaurant industry. The current dynamic poses challenges for restaurants, but it is not the biggest issue impacting sales trends. The gap between restaurant and grocery inflation decreased by 20 basis points in June.

Read more at Yahoo Finance: Menu prices increase for the fifth straight month