NASHVILLE, Tenn. (WTVF) — A new inflation report from the Bureau of Labor Statistics is shining a light on the state of the economy.
It tells us prices for services were up this July — the most in three years. This was particularly true for things like machinery, equipment wholesaling, and investment advice.
While services were the biggest impact, popular goods like vegetables and meat were also affected.
Tommy Hartzog, the managing partner at the Black Rabbit downtown, says the rising cost of beef has been a hurdle all year.
"If something rises too high in cost, and it eats up the slim margins that we already work on, yeah, we'll make a change to the menu based off that," he said.
"It's twofold. It cuts into profits, first of all," he went on. "Second of all, the higher price point on the menu can drive clientele away."
Luckily, they haven't had to pass off too much of the cost to the customer.
That's important for a restaurant just down the street from Broadway that relies on an approachable price point, and a customer who's increasingly more wary of the bottom line.
In place of severe menu price changes, they've opted to cut portion sizes and shop around with vendors.
"It's like the consumer going to the grocery store. If you find out it's better at one store than the other, you're more inclined to go to that store," explained Hartzog.
You can learn more from the recent Price Index release.
Do you have more information about this story? You can email me at nikki.hauser@newschannel5.com.
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