Analysts say fast-food prices feel particularly painful because they're rising faster than grocery prices.
Fast-food prices have been shooting upRestaurant prices are determined by "two major categories" — food costs and labor costs, Citi analyst Jon Tower told BI.
Related storiesFast-food chains put up their menu prices to reflect the higher food costs and payrolls.
AdvertisementGrocery inflation is coolingFast food seems particularly expensive right now because grocery inflation is cooling much more rapidly, analysts BI spoke to said.
AdvertisementBut the inverse is also true — grocery stores benefit much more than restaurants when food inflation cools.
Persons:
—, Jim Sanderson, Jon Tower, Sharon Zackfia, William Blair, Price, Danilo Gargiulo, Bernstein, Gargiulo, they've, Garguilo, Sara Senatore, Chad Frye
Organizations:
Analysts, Service, Northcoast Research, Citi, US Bureau of Labor Statistics, Bank of America
Locations:
Russia, Ukraine, California