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4.26 CPI All Items versus Industry Relevant CPI Analysis

In this section of our busienss plan we look to analyze the consumer price index for all components for the New York metropolitan area against the consumer

price index against the consumer price index for just food away from home for the same region.

When looking at this data over a period of 12 years starting in 1998 we find that while the consumer price index has had a steady move up over the years, it has also enjoyed small periods during which prices have actually come down - on the other hand the consumer price index for food away from home in the New York metropolitan area has always been rising with only the smallest of dips in the early part of 2003.

What this leads us to believe is that there is a constant upward pressure in the prices of wholesale food items that of course finds its way into the consumerprices. It is very important for a small business like a Taste for Tuscany to keep this inflation in mind when projecting future costs and profitablity and wehave made sure that we factor this into our financial projections as well.

Quick Links:

  1. Go to the Corresponding Template section for this industry.
  2. Go to the Corresponding Questionnaire section for this industry.

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