Lettuce Prices Plunge 16.4% Amid Cyclospora Outbreak

Lettuce prices experienced a record-setting 16.4% plunge in July, marking the largest one-month decline on record. The Bureau of Labor Statistics reported that this represented the sharpest month-over-month deflation within the consumer price index's food category, driven by a collapse in demand after thousands of people fell ill.

The Food and Drug Administration identified iceberg lettuce processed at a Taylor Farms facility in central Mexico as the likely source of the waterborne parasite cyclospora. In response to the findings, Taylor Farms voluntarily recalled products from that specific site.

The outbreak caused meaningful sales declines for several major restaurant chains. Chipotle Mexican Grill reported a sales impact of approximately 2 percentage points in late July, while Sweetgreen lowered its full-year outlook. Yum! Brands also reported a near-term sales impact for its Taco Bell chain after the FDA connected the outbreak to the brand.

This price crash follows a period of surging costs caused by higher fertilizer prices linked to the Iran war and increased labor costs resulting from mass deportations.