Grocery prices went up 0.3% in July, after remaining relatively steady in the month of June. The rising prices are largely driven by the high cost of beef. From June to July, the price of uncooked beef roasts increased 6.5%, according to data released by the Bureau of Labor Statistics Thursday. The price of uncooked beef steaks rose 2.3% while the price of uncooked ground beef rose 1.5%. Altogether, beef and veal got 2.4% more expensive last month.
Major meat processing companies explained that the rising beef prices are due to a contraction in beef supplies as a result of extreme drought conditions in recent years. More expensive feed costs also made it near impossible to maintain cattle herds, CNN reported.
On the flip side, menu prices increased only 0.2% this month. Last month, menu prices rose 0.4% and in May, prices spiked up 0.5%. Menu prices went up 7.1% over the course of the year, per CNN. Dine-in restaurants raised prices about 5.8% for the year, while fast food and fast casual chains hiked up menu prices 7.1%.
Shares