Jun 15, 2025
Beef prices have been high for years but lately they’ve been soaring, with the average price of ground beef hitting a new record high of $5.98 per pound in May.
The U.S. Bureau of Labor Statistics has tracked prices for ground beef and sirloin steak since the 1980s. That data shows prices for these two popular products remained fairly consistent until the first summer of the COVID-19 pandemic, when consumers spent more time cooking at home. Consumers have endured multiple record-setting price spikes in the years since.
Why is beef so expensive?
Beef is so expensive right now because drought, high grain prices, inflation and rising interest rates made cattle farming a costly endeavor in recent years. To deal with rising operating costs, many U.S. cattle farmers reduced the size of their herds — and some got out of the business altogether. As a result, the U.S. cattle inventory is the smallest it’s been since 1951.
Prices for products like ground beef and steak are high right now because drought, high grain prices and rising interest rates made cattle farming a costly endeavor in recent years. Now, tariffs add new pressure on prices.