Other reports also indicate rising costs. Rabobank, an international bank, reported that the average cost of a cookout for ten people would exceed $99, up from $97 last year, with beverages and beef being the priciest items. According to agricultural economists, inflationary pressures in the U.S. economy and supply shocks related to specific foods such as beef and lemons are the culprit.

Reasons Behind Beef and Lemon Prices Increase

On average, two pounds of ground beef cost $12.77, which is up 11% from 2023. This is a result of the smallest cattle inventory in 73 years and the lowest amount of red meat in cold storage in more than two decades, according to the Farm Bureau, mainly caused by a severe drought in 2022 that caused that reduction in supply. “It’s a long life cycle for cattle, so it takes time to rebuild that herd”, said Courtney Schmidt, a sector manager at Wells Fargo’s Agri-Food Institute and report co-author.

The Farm Bureau reports that lemon prices have increased by 13% compared to last year, while sugar prices have gone up by 11% due to reduced global production. A citrus greening disease outbreak in late 2023 affected California, the top lemon-producing state in the U.S., leading to a decrease in supply. The U.S. Department of Agriculture predicts a 16% drop in lemon production for 2024.

Despite a general decline in the overall U.S. consumer price index, many Americans remain concerned about inflation. However, the overall increase in food prices in the U.S. for 2024 is expected to be around 2%, which is lower than the average annual increase of 3% in recent years, according to Andrew Stevens, an economics professor at the University of Wisconsin-Madison.

“Yes, food prices are increasing, but they’re not increasing as much as they have in recent years, and they’re even a little below the long-run average”, Stevens said.

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