Ice cream prices are cooling off at the cash register ahead of National Ice Cream Day.
Even as summer heat drives up the demand for frozen treats, the average price of a half-gallon ice cream container in the US was below $6 last month, according to data released Tuesday by the Bureau of Labor Statistics. For the past two years, these frozen desserts averaged around $6.26 per container. The primary driver behind the dip is the price of butter.
Butter prices came down significantly, nearly 9% year-over-year, according to last week’s Consumer Price Index. Meanwhile, ice cream ingredients like milk and sugar had slight price increases, according to CPI data.
In 2023, butter, which is traded on commodity exchanges, was priced at $3.50 per pound — its highest level since 1965. Butter has since dropped to $1.65 per pound, or 31% below the five-year average.
Fresh cream, valued for its rich butterfat content, is the most expensive ingredient in ice cream. Butterfat is not butter, though they are both made from the natural fat found in milk. However, all American butters are at least 80% butterfat under federal regulations.
