The U.S. Bureau of Labor Statistics reports food prices rose 0.5% from July to August, the sharpest monthly jump since fall 2022, according to CBS News. Prices were up 2.7% year-over-year in August. Food industry analyst Phil Lempert said tariffs, climate change, and labor shortages are the three main drivers of rising grocery prices. He noted that shifting growing regions, worker shortages, and U.S. tariffs are combining to push costs higher. Coffee saw one of the steepest hikes, jumping 21.7% from last year, as U.S. tariffs of 50% on beans from Brazil push costs higher. Lempert also warned that shrinkflation — smaller package sizes for the same or higher price — is here to stay. Consumers are adjusting by turning to store brands, bulk buying, and shopping across multiple stores.
