US Ground Beef Smashes Record at USD7.06/lb Amid Supply Crisis
Bureau of Labor Statistics (BLS) data showed the average price of all uncooked ground beef climbed 13.1% year-on-year in May to $7.06 per pound ($15.56 per kilogram). Month-on-month, prices barely moved — edging up just 0.1% from April — yet still managed to set a new record peak.
The milestone caps a stunning 58% cumulative price increase since 2020, the result of a prolonged supply crunch rooted in years of crippling drought, soaring feed costs, and a steadily contracting national cattle herd.
The inflationary pressure was not confined to ground beef alone. Average prices for all uncooked beef steaks rocketed 16% above year-ago levels to $12.80 per pound — the second-highest reading ever recorded — though steak prices did pull back 1.7% on a month-on-month basis, BLS figures showed.
Other cuts posted similarly punishing annual gains. Choice boneless chuck roast prices jumped 22% year-on-year to $9.61 per pound, while the broader category of all uncooked beef roasts advanced 17% to $9.29 per pound.
The beef surge unfolded even as the wider meats, poultry, fish and eggs index dipped 0.2% in May from the prior month. On an annual basis, that index was up 1.8%, while food-at-home prices rose 2.7% over the same period, according to the BLS.
The broader US consumer price index accelerated to 4.2% in the twelve months through May, stepping up from 3.8% in April, with overall food prices registering a 3.1% annual increase.
Constrained beef supply remains the central force driving prices higher. The US Department of Agriculture's Economic Research Service trimmed its 2026 beef production forecast by 243 million pounds to 25.55 billion pounds, pointing to a slower-than-expected pace of cattle slaughter. The agency also projected output to slide further in 2027 as supply conditions remain tight.
US cattle inventories have dwindled to levels not seen in three-quarters of a century. The American Farm Bureau Federation, citing USDA figures, reported that the national cattle and calf count stood at just 86.2 million head as of January 1 — the lowest tally in 75 years.
The supply shortfall has been years in the making, shaped by recurring drought across major cattle-producing regions, mounting input costs, and an agonisingly slow herd rebuilding process. Industry analysts warn that restoring herd size is inherently time-consuming, as producers must hold back more breeding females before slaughter volumes can meaningfully recover — a cycle that can span several years.
The relentless climb in beef prices is increasingly squeezing both family budgets and the restaurant industry alike, hitting burger chains, steakhouses, and barbecue establishments particularly hard, given their heavy dependence on beef as a primary input cost.
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