Beef and chocolate are fueling inflation at the supermarket

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The price of beef rose sharply, with ground beef averaging $6.11 per pound (up 11.8% year-over-year) and steak increasing by 8%. Nonalcoholic beverages, especially coffee, also saw price hikes, with coffee alone rising 2.2% in June.
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Fresh fruit and vegetable prices increased, notably citrus (up 2.3%). Chocolate-based products are becoming costlier due to record-high cocoa prices, prompting major manufacturers to plan double-digit price hikes.
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While most food categories saw inflation-driven increases, egg prices provided relief, dropping 7.5% in May after a 40% surge in 2024. However, upcoming tariffs, such as a 50% U.S. duty on Brazilian imports, may drive future spikes in coffee and orange juice prices.
With the hot weather of summer, inflation has heated up again at the supermarket. While the cost of some grocery items has moderated over the last 12 months, other prices have risen faster than the inflation rate.
A ConsumerAffairs analysis of government and private data found nonalcoholic beverages have gotten more expensive, led by the cost of coffee. While the beverage category rose 1.4% in June, the cost of coffee was up about 2.2%.
Summer cookouts were a lot more expensive this year, thanks to more expensive beef. Beef prices were up 2% in June alone. A drought in the Midwest resulted in significant reductions in herd size.
A pound of ground beef went for an average of $6.11 in mid-July, an 11.8% year-over-year increase. The price of steak rose a bit less 8% year-over-year. Steak is now selling for an average of $11 to $12 a pound.
More expensive citrus
At the same time, buying fresh fruit and vegetables has been a more expensive proposition. Overall costs are up 0.9% but the price of citrus, especially oranges, has surged by 2.3%.
Cakes and cookies containing chocolate are a lot more expensive this summer and are likely to go even higher. Global cocoa prices reached all-time highs around $8,135/ton as of July24,2025. Thats nearly double from five years ago and the increase has prompted Hershey and producers to announce double-digit price hikes on chocolate products later in 2025.
The one bright spot appears to be the price of eggs, which caused so much consumer consternation earlier this year. After surging 40% in 2024, the price of a dozen eggs had fallen by 7.5% in May.
Food economists say tariffs may keep food prices high for a while, since a lot of food in the produce aisle and meat counter is imported. A new 50% U.S. tariff on Brazilian imports starting in August is expected to send prices of orange juice and coffee even higher, potentially adding 6% 10% their current prices.
Posted: 2025-07-25 14:52:48