The cost of food at home rose 0.3% in September, driven largely by a 1.2% monthly jump in beef prices, according to the latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics. Over the past year, beef prices have increased 14.7%, the highest among major grocery categories.

Overall, grocery prices are up 2.7% year-over-year, and the broader CPI also rose 0.3% in September, marking a 3% annual increase. These numbers were released after a delay caused by the recent federal government shutdown.

The sustained rise in beef prices is linked to the historic reduction of the U.S. cattle herd, now at its lowest in decades due to persistent drought conditions, high input costs, and consolidation in the livestock industry. The shortage has reduced beef supplies and tightened margins throughout the supply chain.

The price pressure has caught the attention of the White House. President Donald Trump, facing criticism from producers, recently announced plans to increase low-tariff beef imports from Argentina, a move intended to ease consumer costs at the retail level. However, industry analysts expect the added imports will have little impact on overall prices given their limited volume.

Trump further stoked controversy by blasting domestic cattle producers for pushing back against the import plan, igniting tensions within the U.S. beef sector. In response, Agriculture Secretary Brooke Rollins released a strategy on Wednesday to expand U.S. cattle production and boost processing capacity, aiming to stabilize loterm supply and reduce price volatility.

Other food categories showed mixed trends. Pork prices rose 0.5%, while egg prices dropped 4.7%, and dairy products fell 0.5%. Prices for bakery items and breakfast cereals rose 0.7% and 1%, respectively. The index for food away from home ticked up just 0.1%.

For agricultural professionals, the latest CPI data underscores the need to monitor consumer demand trends, livestock market fluctuations, and the policy maneuvers influencing retail pricing. With beef driving inflation and herd numbers historically low, the implications stretch from feedlots to grocery store shelves.