Beef prices in US near record highs

Beef prices in the U.S. are nearing record levels, driven by supply challenges and rising costs across most food categories.

According to data from the Federal Reserve Bank of St. Louis, the average, per-pound price of 100 percent ground beef reached $5.625 in February. While only a slight increase from $5.545 in January, this marks a nearly ten-percent jump since February of last year, and nears the all-time high of $5.670 reached in September.

Why It Matters

Beef, like many grocery items, has seen a sharp price increase since the COVID pandemic, with Americans facing higher costs for one of their most popular protein sources.

Like with egg prices, the significant increase underscores the country's ongoing struggle to get inflation closer to the Federal Reserve's two-percent target, as well as the broader structural challenges and supply constraints facing the beef industry.

What To Know

According to the most recent inflation reading from the Bureau of Labor Statistics (BLS), the prices of all food groups rose 0.2 percent in February, having risen 0.4 percent in January. The index for meats, poultry, fish and eggs rose 1.6 percent monthly, a softer increase than had been anticipated thanks to a sharp drop in egg prices. Meanwhile, beef prices surged 2.4% in February, outpacing the broader food category.