Steak lovers are feeling the squeeze as beef prices climb faster than nearly everything else in the grocery aisle.
Beef prices have jumped 14.7 percent in 2025 compared to last year, far outpacing the overall food inflation rate of 3.1 percent, according to the Consumer Price Index. That sharp increase is already showing up on restaurant menus across the country, with steakhouses raising prices to keep up with mounting costs, The New York Times reported.
Data from the Bureau of Labor Statistics shows that USDA choice boneless steak prices have surged 20 percent this year, now averaging $14.13 per pound. While many fine dining establishments have avoided major customer backlash so far, owners remain cautious about how much higher they can go.
“We had to raise prices or we weren’t going to be able to cover costs,” Tommy Hall, owner of Halls Chophouse, told the publication. “Every time we do a price increase, I have butterflies in my stomach wondering how customers will take it.” His restaurants recently bumped the price of an eight ounce filet mignon to $61, while rib eye steaks increased from $82 to $85.
Other restaurants are seeing diners adjust their habits. At Jess & Jim’s Steakhouse in Kansas City, manager Debbie Van Noy said some customers are opting for alternatives. “Now, they’re sometimes getting the chicken or the pork chops,” she told The Times. “They’re limiting their steak purchases a little bit.”
One major driver behind the surge is a historic shortage of cattle. The U.S. currently has its smallest cattle inventory since 1951, worsened by prolonged droughts that have strained supply, CNBC reported. Demand remains strong, though, with Americans expected to consume an average of 58.5 pounds of beef per person in 2025, according to the USDA.
On the federal level, President Trump recently convened top advisors to address rising beef prices, following the announcement of a $12 billion aid package for farmers, The Wall Street Journal reported. A vice president of the National Farmers Union described the funding as “just a lifeline, not a long-term solution,” according to Reuters, as officials frame the package as a temporary bridge while broader economic measures take effect.
