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If you've resolved to save money by dining out less this year, you might want to reconsider your strategy - if the situation in the U.S. is any indication.
Rising grocery prices there are driving more people to eat out in restaurants, where they may be able to get a better bang for their buck.
"Right now, supermarket prices are rising faster than restaurant prices," Harry Balzer, industry analyst at the U.S.-based market research firm NPD Group, told Reuters. "The advantage is to the restaurant."
Mr. Balzer says prices at restaurants are expected rise at a slower pace than at grocery stores for the rest of this year.
Grocery stores tend to be quicker at passing changes in food costs on to consumers than large restaurant chains, which tend to lock-in their menu prices over the long-term, Reuters says.
U.S. supermarket food prices are up less than two per cent from a year ago, NPD says. Worldwide, the U.N. Food and Agriculture Organization has reported that prices are at a record high.
While food prices have remained relatively tame in Canada, domestic analysts warn that's about to change.
Have you noticed the cost of any of your grocery items rising?
Wency Leung