U.S. grocery prices rise as beef and coffee costs climb

U.S. grocery prices increased by 1.8% over the year through September, driven by rising costs for ground beef and coffee. While the overall food-at-home index edged down slightly, specific commodities showed divergent trends.

Ground beef prices rose 5.4%, with the average cost of a pound of 100% ground beef reaching $6.79 in September. This increase follows a decline in the U.S. beef cow population, which fell 1% to 28.5 million by July 2026, and slower-than-expected slaughter rates.

Coffee prices also saw a significant climb, with the price index rising 7.1% over the year. Ground roast coffee averaged $9.33 a pound in September, up from $6.47 in September 2024, partly due to weather constraints on Brazilian harvests.

In contrast, egg prices dropped 20.6% compared to September 2025, averaging $2.27 per dozen as laying flocks recovered from previous avian flu losses. Butter prices also fell 10.3% from the previous year, supported by a 6.3% increase in U.S. butter production.