Beef costs have risen faster than most other items in the consumer price index, with the broad beef and veal category up 15% over the past year as of January. The US cattle herd has shrunk in recent years to the smallest since the early 1950s because droughts and higher production costs, including elevated interest rates, have made raising the animals more expensive. While the cattle industry is cyclical, the current contraction has lasted longer than expected because there’s a lot more money to be made selling animals for slaughter while very young rather than keeping them to expand herds.