Milk prices follow the farm price of raw milk.
A gallon of whole, fortified milk averages $4.23 — 2% below the June 2026 record and +1.4% versus last year.
Where milk prices stand
Milk has eased off its peak but stays elevated: a gallon of whole, fortified milk averaged $4.23 in August 2026, +1.4% from a year earlier and −1.9% from the prior month — leaving it 2% below the June 2026 record.
What drives milk prices
Retail milk tracks the farm price of raw milk, which turns on three things: how many cows are in the national herd, how much each cow produces, and what it costs to feed them. Because milk is produced continuously and spoils fast, there is little room to store it, so prices shift as supply and demand move through the year. Federal milk marketing orders and dairy programs also shape what farmers are paid, and that flows through to the carton — which is why milk can climb even when storable dairy like butter or cheese is easing.
A real shelf price
Every figure here is the BLS average retail price for a gallon of whole milk, tracked monthly since July 1995 — an actual dollar amount shoppers paid, not a wholesale quote or a forecast.
Frequently asked questions
How much does a gallon of milk cost right now?
Whole, fortified milk averaged $4.23 per gallon at the U.S. city average in August 2026, per BLS CPI Average Price Data.
Why are milk prices rising?
Retail milk tracks the farm price of raw milk, set by the size of the dairy herd, output per cow and feed costs. Milk is +1.4% year over year as of August 2026.
Is milk at a record high?
As of August 2026 milk is 2% below the June 2026 record of $4.32 (June 2026).
Sources and methodology
- BLS CPI Average Price Data factsheet
- BLS Consumer Price Index news release
- Basket Report methodology
- Basket Report data downloads
Data through August 2026 · Editorial prose reviewed for August 2026 · Source data is independently analyzed by Basket Report and does not imply BLS endorsement.
Explore milk prices
See the full price history and how milk tracks the dairy herd and feed costs.