Coffee Prices at U.S. Grocery Stores Continue to Rise

"Coffee prices at U.S. grocery stores continued to climb September amid higher costs for green coffee due to self-imposed tariffs and other market forces. The U.S. Bureau of Labor Statistics said the overall Consumer Price Index (CPI) rose 0.3% from August and 3.0% from a year earlier. Food prices were up 0.2% on the month and 3.1% year over year. Within the grocery aisle, the "nonalcoholic beverages" category - which includes coffee - rose 0.7% on the month and 5.3% on the year."

"September's CPI reflects a stack of price pressures that U.S. importers, roasters and retailers have been feeling for months. The "reciprocal tariffs" enacted by Donald Trump in April have resulted in new fees paid by U.S. importers of between 10-50% for coffees from nearly all the world's growing countries. The 50% tariff on goods from Brazil - the world's largest coffee producer and historically the largest coffee supplier to the U.S. - has been especially impactful."

Consumer coffee prices climbed notably in September, with a pound of roasted, ground coffee averaging $9.14, up 3% month-over-month and 41% year-over-year. The broader BLS coffee index rose 18.9% year-over-year, far outpacing the 3.1% inflation rate for all food and beverages. The nonalcoholic beverages grocery category increased 0.7% monthly and 5.3% annually. Reciprocal tariffs enacted in April imposed 10–50% fees on most coffee imports, including a 50% tariff on Brazil, intensifying cost pressures alongside high global green-coffee prices, climate shocks, rising production costs, and growing demand. Importers and roasters began raising retail prices before the tariffs amid shifting market conditions.

Read at Daily Coffee News by Roast Magazine