Last week's retail sales report provided fresh evidence that the K-shaped economy is buckling, with national average gasoline prices still printing above $4 a gallon and discretionary spending weakening. Consumer stress is now surfacing in the grocery aisle: as beef prices hover near record highs, Americans are beginning to trade down to cheaper proteins.
Bloomberg cites new data from Chicago-based market research company Circana, showing that beef sales volumes declined .3% during the 13 weeks through mid-July. Volumes had risen about 5% during the same period in each of the previous two years. The decline is notable because it occurred during the peak grilling season around Memorial Day and July Fourth.
Source: BloombergData from the United States Department of Agriculture (USDA) show that the national average price of ground beef in the supermarket is hovering just below $7 per pound, a record high, as a prolonged cattle shortage shows no signs of abating anytime soon.
The Trump administration has focused on easing elevated beef prices through increased imports, but any meaningful relief will take years. The US cattle herd remains near its lowest level in
