Food Prices Jump 0.7% in December, Now 19% Above 2022
New CPI data show U.S. food prices rose 0.7% in December 2025—the biggest monthly increase since September 2022—and are now nearly 19% higher than they were in January 2022, keeping groceries a major pain point even as overall inflation cools. On a year-over-year basis, food prices climbed 3.1% in December, outpacing the 2.7% rise for all goods, with beef and coffee among the biggest drivers: ground coffee averaged $9.05 a pound versus $6.78 a year earlier, and boneless sirloin hit $14.03 a pound, up from $11.67. A Democratic Joint Economic Committee report cited in the piece estimates the typical household spent $310 more on groceries in 2025 than in 2024, while categories like romaine lettuce, frozen orange juice concentrate and even bananas all saw notable price hikes. Economists point to constrained beef supplies, tariffs and weather shocks in coffee-growing regions as key pressures, even as Trump’s November food-tariff cuts have yet to filter through to store shelves. Restaurant meals are rising even faster—"food away from home" was up 4.1% annually in December—driven by higher labor and utility costs, with operators raising menu prices to protect already thin margins.
📌 Key Facts
- Food prices rose 0.7% month-over-month in December 2025, the largest monthly gain since September 2022.
- Food inflation ran at 3.1% year-over-year in December versus 2.7% for overall CPI.
- CBS tracking finds overall food prices are nearly 19% higher than in January 2022.
- A JEC Democratic report estimates U.S. households spent $310 more on groceries in 2025 than in 2024.
- Dining-out prices (“food away from home”) rose 4.1% annually in December, outpacing overall inflation.
📊 Relevant Data
In 2023, 22% of Black individuals in the United States experienced food insecurity, which is more than twice the rate for White individuals.
Food Insecurity in Black Communities — Feeding America
In 2023, food insecurity rates were substantially higher for Black, Latino, and Native American households compared to the national average of 13.5% for all U.S. households.
Food Insecurity Rises for the Second Year in a Row — Center on Budget and Policy Priorities
A 10% decline in domestic farm employment leads to a 3% increase in food prices for labor-intensive crops.
Ag labor shortages cause higher food prices, study finds — Idaho Capital Sun
Reductions in the immigrant workforce for agriculture could increase labor costs and lead to higher food prices due to supply shortages.
Potential Implications of Immigration Restrictions on the U.S. Agricultural Workforce — KFF
The U.S. beef cattle herd is the smallest in 75 years, primarily due to drought, contributing to record-high beef prices.
Why beef prices are higher than ever (and shoppers are paying the price) — NPR
Higher food prices disproportionately affect low-income households, with a 10% increase in food prices associated with a 3.5% rise in moderate or severe food insecurity.
Food Inflation Threatens Post-Pandemic Food Security Recovery — The Conference Board
📰 Source Timeline (1)
Follow how coverage of this story developed over time