"Prices for roasted coffee at United States grocery stores jumped 21.7% in August, representing the fastest monthly price increase since 1997, according to recently released Bureau of Labor Statistics data. The bureau's Consumer Price Index (CPI) showed that instant coffee prices jumped 20.1% in August 2025, bringing the jump for the whole retail packaged coffee category to 20.9%. Analysts are pointing to President Donald Trump's tariffs on goods from large coffee-producing countries - including the 50% tariff on coffee from Brazil - as a primary contributing factor for the swift price jump."
"Historically, there's been very little data regarding how higher coffee prices among traders and roasters trickle down to consumer prices. A 2007 economic report from the USDA suggests that the longer sustained price shocks persist, the larger the price "pass-through" to consumers. "On average, a 10-cent increase in the cost of a pound of green coffee beans in a given quarter results in a 2-cent increase in manufacturer and retail prices in the current quarter," that report states. "If a cost change persists for several quarters, it will be incorporated into manufacturer prices approximately cent-for-cent with the commodity-cost change.""
Roasted coffee prices at U.S. grocery stores rose 21.7% in August 2025, the fastest monthly increase since 1997. Instant coffee prices jumped 20.1% that month, bringing the retail packaged coffee category increase to 20.9%. Analysts cite tariffs on imports from major coffee producers, including a 50% tariff on Brazilian coffee, combined with already elevated arabica commodity prices that exceeded $4 per pound earlier in 2025. A USDA analysis indicates limited immediate pass-through from commodity to consumer prices but larger cent-for-cent incorporation if cost changes persist. Coffee commodity prices remained above $4 as of Sept. 15, 2025.
Read at Daily Coffee News by Roast Magazine
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