Ample dairy supply is keeping butter cheap.
A pound of salted butter averages $3.93 — about 21% below its September 2024 record and −20.7% versus last year.
Why butter is cheap
Yes — by the official numbers butter is meaningfully cheaper than it was at its recent peak. A pound of salted Grade AA butter averaged $3.93 in May 2026, −20.7% from a year earlier and −6.8% from the prior month — leaving it about 21% below the record $5.00 it reached in September 2024.
What drives butter prices
Butter is churned from the butterfat in milk, so its price follows the dairy herd, not a crop or a feedlot. When milk output is strong and cream is plentiful, butter makers have more fat to work with and the wholesale price softens; cold-storage stocks built up over the year add a further cushion. That supply rhythm is also seasonal — inventory is drawn down heading into the autumn baking months and rebuilt afterward — which is why butter can ease even while meat or coffee stay firm.
Where the number comes from
Every figure here is the BLS average shelf price, recorded monthly since April 2018 — an actual dollar amount shoppers paid, not a wholesale quote or a forecast.
Frequently asked questions
How much does butter cost right now?
Salted butter averaged $3.93 per pound at the U.S. city average in May 2026, per BLS CPI Average Price Data.
Why are butter prices falling?
Butter tracks dairy supply. Ample milk and cream production, plus cold-storage stocks, give butter makers more butterfat to work with, which softens prices — butter is −20.7% year over year.
Is butter cheaper than last year?
As of May 2026 butter is −20.7% versus a year ago and sits about 21% below its September 2024 record of $5.00.
Explore butter prices
See the full price history and how butter tracks the dairy cycle.