Inflation climbed higher last month with food and gas seeing a surge ,according to recent data released by the Labor Department.
The U.S. inflation rate rose 2.9% in August—the highest in five months. Key drivers: food and gas.
✅ Good News: Egg prices remain below January’s highs.
❌ Bad News: Beef and bananas could be pushing grocery bills higher, underscoring food inflation pressures.
The August release covers the time when President Trump raised tariffs for major U.S. trading partners.
- Prices for groceries jumped 0.6% while gas prices rose 1.9%.
- Among the food categories, beef and banana prices stood out.
- Coffee prices are getting more expensive as Brazil and Vietnam face tariffs.
Banana prices peak
Bananas, long seen as resistant to inflation, reached 67 cents per pound, highest in two decades. That’s a 8% year-over-year increase, signaling that even low-cost items are not defying inflation or tariffs anymore.
- A major traded fruit in terms of export value, banana has been the cornerstone of many countries’ economies, for both small-scale farms and large plantations.
Beef and eggs
Besides bananas, beef and egg prices have also been contributing to food price fluctuation.
- Egg prices are slightly cheaper from January, albeit they did inch up in August.
- The average egg prices seem to have fallen to $3.6 per dozen in August from $4.9 in January this year.
- But it still remains above the 2024 price when eggs costed $3.2 per dozen.
- Beef, on the other hand, has been sky rocketing and could signal that tariffs are finding their way into prices.
- One of America’s largest beef importer, Brazil filled its entire yearly quote for 2025 in just 17 days. Brazil, the world’s largest beef exporter, accounts for some 23% of U.S. beef imports.