Beef prices set new records, resulting in costly checkouts

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(NewsNation) — American families are facing more challenges at the checkout, as grocery prices continue to climb, especially for ground beef and steaks.

This comes after a recent report from Purdue University revealed that roughly 14% of U.S. households reported struggling with food insecurity. According to the December Consumer Price Index, the cost of eating at home rose 0.7% last month, marking the largest single-month increase in nearly a year.

The price of beef came with sticker shock for many families, as the price of steaks increased by nearly 18% from the previous year. Ground beef is up more than 15% more from last year, though the month-over-month increase was a bit more modest than that of steak.

What is the likely reason behind this cost increase? Smaller herds. Due to rising costs of grains and operations, many cattle farmers across the country have been forced to reduce their size, with some getting out of the farming business altogether. As a result, the demand from consumers combined with a low supply is pushing prices higher.

It is not just beef prices that have families reaching deeper into their wallets at the grocery store. Overall, grocery prices have been climbing since the pandemic, up 26% over the past five years and nearly 3% in the past year.

A recent poll found nearly 70% say they were struggling to afford groceries, but only a third said they would switch away from their preferred brand to save money.

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