Ice Cream Prices Dip Just In Time For Summer

LOS ANGELES, CA — Americans are getting a small break at the grocery store this summer as ice cream prices begin to cool.

The average cost of a half-gallon container fell below $6 in June after hovering around $6.26 for the past two years, CNN reported, citing new data from the Bureau of Labor Statistics.

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The decline is largely tied to falling butter prices rather than cheaper milk or sugar, both of which have recently become slightly more expensive, according to KTLA.

Butter prices were down nearly 9% from a year earlier, according to Consumer Price Index data cited by the outlets. Wholesale butter, which reached about $3.50 per pound in 2023, has since fallen to roughly $1.65 per pound, CNN reported.

The price matters because fresh cream and butterfat are among the costliest components used to make ice cream.

Dairy producers have also increased the amount of butterfat in milk through advances in breeding, nutrition and production technology, industry experts told CNN. That has expanded supply and helped lower wholesale costs for manufacturers.

Federal standards require a product to contain at least 10% milkfat to be labeled ice cream.

The lower prices come as retailers including Target and Whole Foods promote frozen desserts during the summer, CNN reported. Prices could rise slightly later in the year as holiday baking and international demand push up the cost of butter.