Rising beef prices are drawing renewed scrutiny as federal investigators examine whether market dynamics or potential misconduct, are driving costs higher for American consumers.
FOX Business’ Jeff Flock joined FOX Business’ Stuart Varney on “Varney & Co.” to report on a new Justice Department criminal investigation tied to the surge in beef prices as households continue to feel the strain at grocery stores.
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Government data shows ground beef prices have surged, with the Consumer Price Index putting a pound at $6.86 in March, up from $4.64 in 2021, an increase of roughly 50%. Prices are also about $1 higher than a year ago. Steak has climbed as well, reaching about $12.73 per pound.
These concerns have reached Washington. President Donald Trump, in November, called for action on rising prices and industry practices in a post on Truth Social.
“Action must be taken immediately to protect consumers, combat illegal monopolies, and ensure these corporations are not criminally profiting at the expense of the American People,” he said.
At Lombardi’s Prime Meats in Philadelphia, butcher Rob Passio said customers are adjusting their spending habits as prices rise.
“It is what it is. We gotta eat… Maybe they’re saving on other aspects… Maybe they are not going out to dinner as much. Maybe they’re… saving on their utilities,” Passio said.
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Industry pressures extend beyond the checkout counter. Passio pointed to rising operational costs affecting businesses across the supply chain.
“Having two businesses, everything’s high. Insurances went up, payrolls up, utilities are up. So could the meat packers at this time be like, you know what, we have to make some extra money. We have to raise the prices to cover these added expenses,” he said.
The investigation comes as the U.S. cattle herd remains at historically low levels and drought conditions continue to impact key livestock regions, factors that have contributed to tighter supply and elevated prices.
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