Inflation spikes again in April amid Iran war
Inflation rose to the highest level since 2023 in April as high oil prices stemming from the Iran war pushed up prices at filling stations and affected supply chains.
Texas Roadhouse has raised menu prices due to inflation, raising questions about whether other restaurants will do the same.
Menu prices are beginning to rise slowly, according to a May 12 report from the National Restaurant Association. Restaurants raised prices by 0.2% in April for the second straight month, according to the report. Compared to a year ago, menu prices have increased by 3.6% since April 2025. The organization says this is the slowest pace in 15 months.
“Overall, restaurant price inflation remains relatively moderate, well below the 8.8% peak reached in March 2023, which was the fastest rate of increase in more than 20 years,” the National Restaurant Association said.
Texas Roadhouse’s impact on inflation
Texas Roadhouse announced in its 2026 first-quarter financial results released on May 7 that despite increased sales, menu prices increased by 1.9%.
The chain’s restaurant profit margins declined due to product and labor inflation, but some of the decline was offset by higher sales, the earnings report said.
Menu growth varies between limited-service and full-service restaurants
The report also differentiated between menus at limited-service establishments (where customers typically order and pay before their food is prepared and served) and full-service restaurants (where customers are seated and staff wait).
Menu prices at limited-service restaurants rose 0.4% in April, up from 0.2% in March and the highest level since December. Meanwhile, full-service menu prices rose 0.1% in April.
What is the cause of the soaring menu prices?
Overall, consumer prices rose 0.6% in April, following a 0.9% rise in March, according to the National Restaurant Association. These increases were mainly due to higher gasoline prices, which rose 21.2% in March and 5.4% in April.
What is the inflation rate today?
According to the Bureau of Labor Statistics’ inflation measure, the Consumer Price Index, prices rose 0.6% from March to April, up 3.8% from a year ago, USA TODAY reported.
Natassia Paloma can be reached at npaloma@gannett.com, @NatassiaPaloma at x. natassia_paloma on Instagram and Natassia Paloma Thompson on Facebook.
