Food Prices Surge in the U.S. Despite Falling Inflation in 2025
Meat, Coffee, and Grocery Costs Rise Sharply as American Households Face Continued Pressure.
Despite a slight decline in inflation compared to its peak in recent years, American consumers faced sharp price increases in several staple food items throughout 2025, making everyday expenses such as coffee and daily dinners noticeably more expensive.
According to Newsweek, the latest federal data shows that meat prices rose between 11% and 25% year over year (from November 2024 to November 2025). Although the Trump administration announced tariff reductions on meat imports in an effort to ease prices, experts believe that structural factors such as drought conditions will keep meat prices elevated for years to come.
The increases were not limited to meat. Coffee imports surged by 35% in a single year, directly pushing up the cost of daily coffee purchases. Prices for American lettuce rose by 21%, romaine lettuce by 12%, and bananas by 7%. In the beverages and processed foods sector, orange juice prices increased by 12%, while cookies rose by 8%.
The U.S. Bureau of Labor Statistics reported that the overall inflation rate stood at 2.7% in its latest reading on December 18, but cautioned that the data remains incomplete due to the government shutdown, which may affect its accuracy. Diane Swonk, chief economist at KPMG, said that disruptions to government contracts may have temporarily lowered prices, stressing that the full inflation picture will only become clear once December data is released in mid-January.
Meanwhile, a survey conducted by the AP-NORC Center for Public Affairs Research found that most Americans have noticed rising prices for food, electricity, and even holiday gifts in recent months—highlighting the ongoing strain on household budgets despite the overall decline in inflation.
