Low supplies and coffee inflation are forcing roasters to raise prices of the favorite beverage for most Americans.

One cause is a rising monthly consumer price index (CPI) in the U.S., which was up 0.3% in November.

Since CPI tracks the cost of various commodities, any rise affects the pricing of many items, particularly food and beverages.

Interestingly, some consumer classes other than food are trending in the opposite direction by getting cheaper than previously. Two of these are American auto insurance rates, which are decreasing and rent rates, now at their smallest increase since 2021.

Tight Global Supplies

So the question is what has made coffee the exception? 

According to KAAL TV, first there is the CPI rise, which reached its highest point in November since April 2024. 

Then there are global ramifications such as dry weather in the Arabica capital of the Americas, namely Brazil.

Weather has prompted Arabica bean prices to rise by 18% year-on-year in 2024, past the $3-per-pound barrier.

Additionally, studies show that Americans are more and more craving after fancy beverages that use Arabica beans despite their scarcity.

Even though Robusta beans fare less than Arabica locally, their tight supplies are also affecting overall coffee rates. At the end of November, Robusta sold at the upper range of $5,694 a tonne, continuing its year’s peak in September 2024.   

Instant Coffee Getting Dearer

The cost effect is also spilling over to the instant coffee side, which makes the bulk of office beverage supplies.

Nestlé, one of the major instant coffee makers, has hinted at a 30% increase in global coffee prices in 2025. This suggests the coffee product maker could also increase prices for its popular brand range.

The increase is already taking shape in the UK, where Nestlé’s products are 15% more expensive than in 2023.

That Inflation in a Cup of Coffee

Consumers could try to economize by direct purchases, for whole beans cost less than a restaurant coffee.

A single 6-ounce cup of brewed coffee at an American restaurant sold at between $3.08 and $5.46 across 2024. In comparison, the top price for a pound of coffee beans, as of December 10, 2024, was $3.47.

As restaurant beverages are far more pricier than their homemade equivalents, consumers could therefore switch to the cheaper side. Even the rich sometimes see this pricey side and question it, as Warren Buffet’s wife did in 2023. 

In short, there is more to coffee inflation across not just the United States but the world, too. To learn more about the local effect of inflation, read on the statistics below.

United States Coffee Inflation Statistics

Although coffee has become quite expensive in 2024, with inflation adjustment it might actually be cheaper than in past decades. One study by the US Inflation Calculator found that 1980 had more expensive coffee than 2022 in the 2022 dollar rate. In real terms, coffee cost only $3.14 per pound in 1980 while in 2022 it hit $5.89. But in 2022 dollars, the 1980 price is equivalent to $6.45, meaning coffee was actually more expensive then. 

Below is a quick math that includes actual and adjusted rate 2022 rate for the most expensive coffee years in the United States since 1980.

1986: Actual price: $3.43 per pound. Adjusted inflation price: $6.078 per pound.

1995: Actual price: $4.04 per pound. Adjusted inflation price: $5.789 per pound.

1997: Actual price: 4.11 per pound. Adjusted inflation price: $5.602 per pound.

2012: Actual price: $5.68 per pound. Adjusted inflation price: $5.997 per pound.

2022: Actual price: $5.89 per pound. Adjusted inflation price: $5.89 per pound.