If going out seemed expensive in July, dining and drinking budgets were likely stretched further in August.
The consumer price index (CPI) for alcohol away from home (+3.8% year-over-year [YoY]) and food away from home (+3.9% YoY) far outpaced overall inflation (+2.9%) in August, according to the U.S. Bureau of Labor Statistics’ (BLS) most recent monthly report.
Spirits (+4%) drove last month’s CPI increase in alcohol away from home, followed by beer (+3.2%) and wine (+3.1%). The CPI for full-service meals away from home increased 4.6%.
The CPI for total bev-alc (+0.6%), beer (+0.5%) and spirits (+0.1%) away from home increased month-over-month (MoM), but wine away from home (-0.1%) declined.
At +1.9%, total bev-alc both at home and away increased by a rate comfortably below that of overall inflation. The CPI for alcohol of all categories at home recorded even smaller increases, and declined in some metrics.
The CPI for total bev-alc at home increased 0.3% YoY, outpaced by beer at home (+1.2%) and overall spirits at home (+1.1%). However, whiskey at home declined 1.8%. When whiskey was excluded from spirits, the category’s CPI increased 2.3%. Wine at home declined 0.9%.
All megacategories at home increased MoM. Total bev-alc, beer and spirits at home all increased 0.6% MoM, followed by wine (+0.4%). Despite a YoY decline, whiskey at home increased +0.5% MoM; when whiskey was excluded, spirits at home increased 0.7% MoM. Wine at home increased 0.4% MoM.
Earlier this week, financial services firm Jefferies issued a report citing affordability is the biggest headwind facing the bev-alc industry. Read coverage of the report here.