Grocery costs rose sharply in August, complicating Donald Trump‘s campaign pledge to lower food prices. The Bureau of Labor Statistics reported Thursday that the food-at-home index jumped 0.6% from July, the steepest monthly increase since August 2022. Prices are now higher across nearly all major grocery categories compared with last year.
The spike comes as Trump’s tariff-driven trade agenda continues to shape the economy. While the administration argues tariffs protect American workers, economists note they also raise costs on inputs like fertilizer, machinery, and transportation that ripple through the food supply chain. Retailers such as Walmart and Kroger say they are absorbing some increases but have been forced to raise prices on select items.
According to the report, coffee prices rose 20.9% year-over-year, beef steaks 16.6%, apples 9.6%, and bananas 6.6%. Kroger executives stressed they only raise prices as a “last resort” but acknowledged persistent wholesale cost pressures.
White House press secretary Karoline Leavitt countered that overall grocery inflation under Trump has averaged 1.8% annually — lower than during the late Biden era — and said ongoing deregulation and investment will “fuel an economic boom.” Still, analysts caution that factors such as weather and labor shortages also contribute to price volatility.
Economists say tariff reductions on food imports could ease pressures, but any relief would take months. In the meantime, families face higher bills heading into the holiday season.
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