Coffee Prices Post Largest Annual Jump Since 1997

US retail coffee prices surged 21% year-over-year in August, the largest annual increase since October 1997, according to Thursday's Consumer Price Index. The monthly 4% jump marks the steepest rise in 14 years. Trump administration tariffs on major coffee exporters -- 50% on Brazil, 20% on Vietnam, and 10% on Colombia -- are driving costs higher as 99% of US coffee consumption relies on imports. J.M. Smucker plans its third price increase this winter for Folgers and Cafe Bustelo brands after raising prices in May and August. New Orleans chain French Truck Coffee has implemented a 4% tariff surcharge. Starbucks expects peak cost impacts in 2026 due to its advance purchasing practices. KPMG chief economist Diane Swonk predicts prices will exceed historical records as Brazilian tariff effects reach retail shelves.

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