Coffee prices keep surging — and it’s likely to get worse

Aug 12, 2025 | Uncategorized

There’s no relief for coffee drinkers.

Coffee prices spiked 14.5% in July from a year ago, data from the Bureau of Labor Statistics show, while the average retail price for a pound of ground coffee hit $8.41.

That’s before 50% tariffs on imports from Brazil — the world’s top coffee producer — took effect earlier this month, a move that’s likely to ratchet up prices even more.

Broadly, tariffs are expected to contribute to retail price hikes of 15% to 20% for ground coffee, according to Bernstein analyst Danilo Gargiulo, and importers may shift to alternative suppliers like Vietnam and Colombia.

Pre-tariffs, coffee prices were already on the rise following adverse weather conditions in leading coffee-producing countries — surging 38.8% in 2024 from average levels a year earlier, according to a report from the Food and Agriculture Organization of the United Nations.

Demand for coffee, meanwhile, is only expected to soar.

Billy Roberts, a senior economist of food and beverage at CoBank’s Knowledge Exchange research division, told Yahoo Finance last month that higher prices may translate to consumers drinking more coffee at home.

“Consumers are going to continue to have their coffee,” he said. “It’s just going to be a question of where they’re ultimately going to do so.”

Read more: What Trump’s tariffs mean for your money

Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.

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