U.S. Food Inflation Pressures Rise as Beef and Coffee Prices Surge

US consumers continue to face sticky inflation across everyday goods ranging from beef and coffee to produce such as tomatoes and pineapples, while corporate leaders highlight ongoing supply chain pressures that are driving higher costs, Yahoo Finance reported.

Coffee prices surged, rising 18.5% year-on-year and about 2% month-on-month.

In April, US food prices rose 0.5% month-on-month and 3.2% year-on-year, according to the Consumer Price Index (CPI), marking the strongest annual increase in overall inflation in three years.

Food at home increased 2.9% annually, while food away from home rose 3.6%.

According to Bureau of Labor Statistics (BLS) data, uncooked ground beef prices rose about 15% year-on-year in April, with average prices reaching around $6.90 per pound.

Beef accounts for a significant share of fast-food input costs, with McDonald’s noting it represents roughly 40% of its protein mix, compared with chicken in the high teens.

McDonald’s CEO Chris Kempczinski has said that when beef prices rise, “chicken becomes a much more attractive value opportunity.”

Coffee prices also surged, rising 18.5% year-on-year and about 2% month-on-month, according to CPI data.