(TNS) — Coffee prices are hitting Americans right where it hurts these days, their pockets.

For instance, roasted coffee prices surged 12.7% in June compared to a year earlier, according to inflation data from the Bureau of Labor Statistics, while instant coffee witnessed a 16.3% increase.

The retail price for a pound of ground coffee last month was $8.13, which is up about $1 since the beginning of the year.

Moreover, the demand for coffee is set to increase in the U.S. since Americans are found to drink more coffee each day than bottled water.

For those who can’t function without a cup, its best to prepare for a future where prices are racked up even more due to the combination of tariffs, rising global consumption, and climate change.

“As a coffee lover, I wish $8.13 were likely a ceiling. I sincerely doubt it,” Chris Barrett, an agricultural economist at Cornell University, told Yahoo Finance. “I don’t know what might be in store because that depends an enormous amount upon weather in key growing areas. But given the tariffs that seem likely to go into effect over the coming month or so, it’s unlikely prices are going to come down. They’re likely to go up, perhaps quite appreciably.”

Back in April, President Trump set in motion a universal 10% baseline tariff with higher “reciprocal” tariffs to go into effect Aug. 1. Trump then went on to threaten Brazil, the world’s top coffee producer, with a 50% tariff, while imports to the US from Vietnam, the world’s second-largest coffee producer, are saddled with a 20% tariff.

Last year, coffee prices around the world increased 38.8% from their average levels in 2023, according to a report from the Food and Agriculture Organization of the United Nations.

Price increases in 2023 and 2024 were largely driven by adverse weather conditions in major coffee-producing countries such as Brazil, Indonesia, and Vietnam and heightened shipping costs, the report mentioned.

“Brazil is the biggest coffee producer in the world,” Barrett said. “When you get a hot, dry period in the Brazilian coffee-growing regions, that depresses supply. We saw that last year.”

Growers have even sought to plant at higher altitudes to mitigate the effects of warming temperatures and drought, even moving into areas that were mostly used for tea production, according to Barrett. But supply can hardly expand enough to keep pace, especially as demand increases in countries such as China.

Billy Roberts, a senior economist of food and beverage at CoBank’s Knowledge Exchange research division, told Yahoo Finance that the demand for coffee is clear, as customers are willing to spend a bit more when they have to.

Higher prices might translate to consumers drinking more coffee at home, but “consumers are going to continue to have their coffee — it’s just going to be a question of where they’re ultimately going to do so.”

Taylor Mork, co-founder and president of Crop to Cup Coffee Importers, a specialty coffee importer based in Brooklyn, told Yahoo Finance that the “real scary rise” in prices reared its ugly head when futures for arabica in New York — the world’s most popular beans — shot past $4 a pound earlier this year.

Since the record highs closer to $3 per pound of coffee futures have cooled during expectations that world coffee production will be higher this year, Barrett pointed out that futures have gone higher recently due to tariffs concerns.

“Our costs for quite a while have been up about a dollar a pound,” an increase of more than 30%,: Mork told the outlet. “That’s pre-tariff.”