Menu inflation moderated in January

Inflation levels slowed to 2.4% in January, which was below expectations and marking the lowest year-over-year increase since May 2025. The Consumer Price Index, reported Friday morning by the Bureau of Labor Statistics, was down 0.3% from the month prior. 

Gas prices drove much of the cooldown, registering a 3.2% decrease during the month. As of February, the national average remains below $3 per gallon. 

Meanwhile, food prices moderately increased to 2.9% year-over-year, marking a 0.2% increase from December. Grocery price inflation remains well below menu price inflation, at 2.1% over the past year. Grocery prices grew 0.6% month-over-month, building on a 0.5% gain in December. Through 2025, grocery price increases averaged just 0.3% per month...