The holiday season is a time when many people indulge in food and drink—and for some, that includes a night out at a premium steakhouse. But steak dinners will cost more this year. Although inflation across many categories has cooled, beef prices remain elevated due to sector-specific issues.
First, the United States has historically low cattle inventories, with the smallest herd since the 1950s. The initial decline in cattle inventory was deliberate, as ranchers reduced herd size to improve margins and increase their capital efficiency, with the expectation that future prices would be higher.
