The cost of coffee in the United States has surged dramatically, with the average price of a pound of ground coffee reaching $9.14 in September, marking a 3% increase from August and a staggering 41% rise compared to September 2024. This upward trend has been consistent since the beginning of the year, driven by a combination of factors including tariffs, weather risks, and inflation. According to the U.S. Labor Department, consumer prices for food, both for home consumption and dining out, rose by 3% in September compared to the same period last year. The broader consumer price index for coffee products, including instant coffee, showed a 19% increase from September 2024, remaining steady from August. Nikki Bravo, co-owner of Momentum Coffee in Chicago, recently raised prices by approximately 15% across her four locations. She cited a 15% increase in the cost of coffee beans and additional expenses such as cups and sleeves. Bravo has started roasting more beans in-house to mitigate costs, sourcing most of her beans from Africa. The minimum wage increase in Chicago to $16.60 an hour has also contributed to rising operational costs. High inflation has left consumers hesitant to spend on luxuries like takeout coffee, with the average price of a regular coffee at U.S. restaurants rising to $3.54 in September from $3.45 a year earlier. The U.S. relies heavily on imported coffee, with 99% sourced from countries like Brazil, Colombia, and Vietnam. Tariffs imposed by the Trump administration, including a 40% tariff on Brazilian products, have disrupted supply chains, leading to reduced availability and higher prices. Weather conditions such as heat and drought have further impacted global coffee production, driving prices up by nearly 40% in 2024. In response, a bipartisan group of U.S. House members introduced a bill in September to repeal all tariffs on coffee, arguing that such measures harm consumers and lack economic rationale. Rep. Ro Khanna and Rep. Don Bacon, co-sponsors of the bill, emphasized the need for Congress to address the issue, highlighting the negative impact of tariffs on everyday Americans.
