Aug 19, 2025
The price of wholesale vegetables shot up 38% in July – an increase that, experts say, is no small potatoes.
As President Trump’s tariff war continues to spark fears of inflation and even a possible recession, the latest Producer Price Index (PPI) report from the Bureau of Labor Statistics, released August 14, seems to justify those concerns.
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According to the report, wholesale prices climbed 3.3% for the year ending in July, “the largest 12-month increase since rising 3.4 percent in February 2025.”
Overall, the Consumer Price Index (CPI) for July shows that “food at home” (grocery) prices increased year-over-year by 2.2%.
While it’s true that the added cost hasn’t yet equated to a surge in increased grocery store prices, many experts believe that that is likely on the horizon. It’s a development that runs contrary to the concerns of the 96% of 2024 election voters who cited grocery prices among their main priorities at the ballot box.
It’s easy, then, to point to Trump’s tariffs as a main culprit for the wholesale price increases and impending consequences at the grocery store checkout. But a closer look suggests the issue is a little more complicated.
Many factors can lead to soaring prices
Trump’s tariffs may not be completely on the hook for rising veggie prices, but that doesn’t mean that he’s free from blame. In fact, a combination of Trump’s policies (including tariffs), along with outside influences, could all be contributing to the veggie price jump.
Economist David Ortega told Marketplace that tariffs, on average, are up year-over-year on common vegetable imports “like tomatoes, asparagus, cauliflower, cucumbers” and that “limiting overall supply … can cause homegrown veggie prices to rise too.”
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Yet ABC News spoke with multiple analysts who concluded that “Wholesale vegetable prices often fluctuate from month to month … pointing to an array of possible explanations that includes adverse weather [and] supply chain blockages” along with tariffs.
Phil Kafarakis, president of the Chicago-based IFMA The Food Away from Home Association, told NBC News that combining tariffs with Trump’s ongoing deportations have exacerbated the issue of produce costs because there are “not enough laborers in the fields to pick up and collect product as it's coming to harvest.”
NBC News also cited Robert Lynch, an economics professor and co-author of a recent report on immigrant workers in the U.S., who said that employment of agriculture workers dropped 6.5% between March and July this year after increasing during the same periods for the last two years. That could be a result of immigrant workers who were deported, fewer new immigrants being allowed into the country and those who are here but fear government raids if they show up for work.
Either way, the story adds that American workers are not stepping in to fill those employment gaps.
Ultimately, the experts can’t pin the rise in wholesale vegetable costs on any one culprit, with tariffs, deportations, inclement weather, issues with the supply chains or other factors all possible contributors. They do, however, largely agree that, as Ortega warned, “We could see some of those cost increases get passed on to the consumer in the coming months.”
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Strategies for combating rising produce prices
In addition to vegetables, the recent CPI showed a significant increase in cost for food items ranging from eggs (16.4%) to coffee (14.5 %) to uncooked ground beef (11.5%).
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And Pew Research says that the rising price of food makes it harder for 69% of Americans to eat healthy, with lower-income adults feeling the effects most acutely.
That said, there are strategies that people can take to ensure their grocery budget goes further.
Journalist, food marketing expert and so-called “Supermarket Guru” Phil Lempert advises that “40% of all of our food is wasted in this country” and that Americans should be wary about overbuying and overcooking. “Take inventory before you go shopping,” he recommends, along with buying in-season and frozen produce, both of which can help drive your grocery bill down.
Other simple tips for saving money on produce include shopping local growers and farmer’s markets, taking advantage of store sales on specific produce or, simply, planting your own garden at home.
Due.com offers a number of strategies, including meal planning with affordable ingredients and substituting expensive ones, buying produce on sale and freezing it for when you need it and joining a grocery store loyalty program to earn points and reduce costs. And The Chef & The Dish suggests eliminating pre-cut produce, as “it is so much more expensive and filled with preservatives that are simply not good for you and your family.” Instead, they say that buying regular produce and chopping it yourself can “save a ton of money and your food is so much fresher.”
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Mike Crisolago is a Staff Reporter at Moneywise with more than 15 years of experience in the journalism industry as a writer, editor, content strategist and podcast host. His work has appeared in various Canadian print and digital publications including Zoomer magazine, Quill & Quire and Canadian Family, among others. He’s also served as a mentor to students in Centennial College’s journalism program.
