Why are burger prices rising so much in the US?
Food prices generally held steady for the month of February, but this was not the case for an American classic: the hamburger. Why is it so expensive?
Inflation has cooled and is at a much lower level than the highs it reached in recent years. However, prices continue to rise, albeit at a slower rate.
According to the latest Consumer Price Index (CPI) figures, inflation rose 0.4% in February, with food costs staying flat. Despite the price of food holding steady, some items continue to bear steeper price tags, including basics like eggs and coffee.
One thing that’s hit Americans particularly hard is the high cost of the humble hamburger. Last year, the high cost of beef raised the average price of a burger to almost $16, according to Toast. Recently, social media has been abuzz with reports of exorbitant beef prices at fast food joints.
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Why are burger prices rising so much in the US? Big-budget burgers due to drought
The main problem causing the prohibitive burger prices is lack of supply. At the beginning of the year, there were only 87.2 million cattle and calves throughout the country, a number that is 2% lower than last year’s count. The 2024 tally is the lowest inventory in more than 70 years, according to the American Farm Bureau Federation (AFBF).
The low supply level can be attributed to the drought that affected Texas and other cattle-raising states. Farmers were forced to sell their livestock due to dry conditions and the resulting higher cost of maintaining a herd.
There is now more moisture to sustain the animals, but there are fewer female cattle left for breeding purposes. This means that it will take time to get the cattle population numbers up again.
For the moment, there is no relief in the horizon. AFBF economists predict that the situation will not improve anytime soon for burger lovers, who might see record-high price tags on beef at the supermarket toward the end of 2024 and well into the following year.