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U.S. Grocery Prices Rise Again, With December Marking Fastest Monthly Jump Since 2022

Experts tie the increase to tariffs, higher input and packaging costs, weather and farm labor shortages that are pushing up some staples more than others.

Overview

  • Bureau of Labor Statistics data show food-at-home prices up 2.4% over the past year, including a 0.7% rise in December, the quickest monthly gain since October 2022.
  • Grocery costs are nearly 26% higher than five years ago, reflecting several years of elevated prices that have compounded shoppers’ strain.
  • Price changes are uneven: ground beef hit a record $6.69 per pound in December, coffee costs have climbed, while eggs and some dairy items have fallen over the past year.
  • President Trump’s assertions that grocery prices are declining are contradicted by the latest official data and industry commentary.
  • Policy and outlook factors include the November removal of a 40% tariff on Brazilian imports expected to ease coffee prices and a USDA forecast of roughly 2.3% grocery inflation in 2026, even as labor constraints and input costs keep pressure on shelves.