Titular
Butter prices in the United States rose to their highest levels in more than a year, while dairy prices also recovered worldwide, which underlines broader concerns about food inflation between consumers.
Key facts
Butter prices in the United States increased to approximately $ 4.80 per LIBRA in June 2025, according to the most recent data cited by the Federal Reserve of St. Louis, an increase of almost 4 % compared to June 2024, which places prices at its highest level since the beginning of 2023.
The reduction of the global supply of milk and the increase in supplies costs, including labor and packaging, are the main drivers of the increase, said the Financial Times On Sunday, with the butter price index of the United Nations Food and Agriculture Organization at a record level.
He Financial Times He reported that butter futures in international markets have risen abruptly in recent weeks, reflecting similar imbalances between supply and demand in the European Union, the United States, New Zealand, Argentina and Australia.
What is the correlation between global and United States increases?
Although the recent increase in butter prices in the United States reflects internal inflationary pressures, it is also closely linked to developments abroad. A reduction in the world milk supply – causing due to adverse climatic conditions, reduction of herds and increased production costs – has caused international butter prices to rise, Bloomberg reported in July. According to the United Nations Food and Agriculture Organization, the dairy production of large exporters such as New Zealand and parts of Europe – which together represent about 70 % of the exported butter worldwide – began 2025 with historically low inventories that caused a rebound in prices. Bloomberg reported that butter prices in New Zealand rose 46.5 % to June, reaching $ 5.10 per pound.
Although the United States produces most of its own butter, international price referents influence wholesale prices and domestic detail. The highest supplies costs also affect butter prices in the United States, Europe and New Zealand, especially before the highest consumption seasons.
Butter prices reflect the inflationary concerns of Americans
A reuters/Ipsos survey made in April more than 4,000 adults found that almost 90 % of Americans are concerned about increasing inflation, and only 32 % approves inflation management by President Donald Trump. The consumer price index (CPI), the most cited inflation metric, has been as low as 2.3 % this year, almost in line with the long -term goal of 2 % of the Federal Reserve. This is significantly lower than the inflation rate of more than 9 % reached in June 2022, but concerns persist while economists warn that Trump’s tariffs will lead to higher prices for consumers. Inflation has increased slightly in recent months, reaching 2.7 % in June, the second consecutive month of increases after 2.3 % recorded in April. According to the CPI, inflation in food for consumption in the home has remained high; The Federal Reserve of St. Louis shows an increase in butter prices since April.
Lee: Trump tariff to Brazil threatens the prices of hamburgers in the US
What to observe
The Office of Labor Statistics will publish on July IPC on Tuesday, which is expected to reflect an increase in inflation. Business Insider reported Monday that this week’s report will probably show more tariff pressure on prices, with Trump measures probably reflecting in price increases for consumers – an expected increase of 0.2 % compared to the previous month and 2.8 % in the last year.
Key history
He Financial Times He reported an increase in dairy products prices, with butter futures in Europe that rise along with the reduction in global milk production. The lower production than expected in New Zealand and interruptions in European farms caused by heat wave are key taxpayers to a more adjusted global offer. The demand for food manufacturers in China and Southeast Asia has remained strong, exerting additional pressure on export markets. The international rebound has raised wholesale prices, which now move in the supply chain to retailers and consumers in the United States.
This article was originally for Forbes US
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