Beef prices are at a record high in the wake of a drought that left cattle inventory at the lowest level in 70 years amid strong demand, resulting in price increases for steak and ground beef.

The Bureau of Labor Statistics' consumer price index report for August showed a surge in beef prices over the past year. Ground beef prices were up 12.8% on a year-over-year basis in August, while beef roasts were up 13.6% and steak prices were 16.6% higher. Those inflation figures are well above the 3.2% year-over-year rise in all food categories, as well as the 5.4% rise in meat prices from last year.

Cattle rancher Mike Martz of Larson Farms in Maple Park, Illinois, told FOX Business' Kelly Saberi that cattle inventories have declined in recent years due to drought affecting important ran

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