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It’s becoming more expensive for Americans to get their caffeine fix.
The average US price of a pound of ground coffee reached $9.14 in September, up 3% from August’s average of $8.87 and 41% higher than in September 2024, according to US government data. Coffee prices have been increasing rapidly since the beginning of this year.
The U.S. Labor Department reported Friday that consumer prices of food for household use and purchased away from home were up 3% in September compared with the same month a year earlier. The Consumer Price Index, which measures a broad sample of all coffee products, including instant coffee, showed U.S. coffee prices rising 19% from September 2024 and flat compared to August.
Nikki Bravo, co-owner of Momentum Coffee in Chicago, raised the prices of lattes, cappucinos and other beverages by about 15% at her four locations last week.
Bravo said she is paying 15% more for coffee beans than a year ago and has started roasting more beans at home to save money. It gets most of its beans from Africa.
Other items have also become more expensive, he said, such as cups and sleeves. Additionally, the minimum wage in Chicago increased to $16.60 an hour on July 1.
Bravo said, “At some point we just had to pass it, we couldn’t keep eating it.”
Persistently high inflation has also made consumers uncertain and less willing to spend on takeout coffee, he said. The average price of regular coffee at U.S. restaurants was $3.54 in September, compared with $3.45 a year earlier, according to Toast, a restaurant management system.
Here’s why Java is getting such a blow and how some people are trying to mitigate it:
charge
Outside of Hawaii and Puerto Rico, there are few places in the US where coffee can be grown. According to the National Coffee Association, a trade group, 99% of America’s coffee is imported.
Brazil is the top source of American coffee, supplying 30% of the market. The Trump administration imposed a 40% tariff on Brazilian products in July, in addition to the 10% tariff previously imposed. According to the investment bank, Brazilian producers have begun halting shipments to the US as they negotiate with US roasters over who will bear the additional costs, reducing supply in the US. ubs,
Colombiawhich supplies 20% of the US coffee market, is subject to a 10% tariff, but the President donald trump Recently Colombia has been threatened with higher tariffs and a cut off of US aid. vietnamwhich supplies 8% of the US coffee market, has been subject to a 20% tariff since the summer.
In September, Trump announced that “unavailable natural resources” could be exempted from tariffs for countries that reach trade agreements with the US, but so far, coffee has not received any exemptions.
weather related risks
Heat, drought and other poor weather conditions have hurt coffee production globally in recent years, causing prices to rise. According to the Food and Agriculture Organization of the United Nations, world coffee prices are set to rise by nearly 40% in 2024.
Earlier this month, coffee prices soared after the National Oceanic and Atmospheric Administration declared La Nina conditions. This has increased concerns about the possibility of drought in Brazil.
Due to the risks that climate change poses to coffee production, some researchers are trying to develop more climate-resistant varieties of coffee.
Congress i can step
In September, a bipartisan group of US House members introduced a bill that would repeal all tariffs on coffee.
U.S. Representative Ro Khanna, a California Democrat, said, “We produce only 1% of the coffee Americans consume. This is the best example of why Trump’s sweeping tariffs make no economic sense.” Khanna co-sponsored the bill with U.S. Representative Don Bacon, a Nebraska Republican.
Bacon said Friday that he became interested in the issue when he saw how much coffee cost at the grocery store. He said he’s also not a fan of tariffs and thinks Congress — not the president — has the power to impose them.
Bacon said he thinks the Trump administration now realizes that imposing tariffs on products the U.S. can’t develop is bad for consumers, and he hopes the bill passes.
“I am hopeful that the President and Congress will see the positive benefits of removing these tariffs on everyday Americans,” he said.
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Durbin reported from Detroit. Ragaber reported from Washington