(Bloomberg) -- US inflation for food consumed at home has started to level off, but prices are still going up at American restaurants, according to US Agriculture Secretary Tom Vilsack.

“What you will find is, if you go deeper into those numbers, the opportunities at grocery stores are improving significantly, but it is restaurants where we are still seeing a bit of high inflation,” Vilsack told Bloomberg TV in an interview Tuesday.

That situation — while good news for consumers eating at home — presents challenges for dining establishments, “nullifying a buffer for restaurant sales trends that previously benefited the industry,” William Blair analyst Sharon Zackfia said in a note to clients.

The next US consumer price index report is due Wednesday.

Vilsack said the ongoing bird flu outbreak is clearly a component keeping egg prices elevated. He said the outbreak isn’t as bad as a year ago but “we still continue to grapple with it.” The outbreak has killed more than 72 million birds in the US since 2022. 

--With assistance from Christina Hailey-Allen, Kim Chipman and Daniela Sirtori.

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