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Beef prices continue to surge in the U.S., straining consumer wallets.

The latest inflation data showed that prices for beef and veal rose 14.7% in September from a year earlier, while overall food prices in the U.S. increased 3.1% year-over-year.

The price of a steak in the U.S. is soaring as cattle herds dwindle and farmers' input expenses rise sharply with feed costs skyrocketing.

According to the American Farm Bureau Federation, input costs for ranchers are up more than 50% over the past five years.

At the same time, the U.S. cattle herd is at a record low. This year, America reported the smallest national cattle herd since 1951.

Farm economists say that the industry is experiencing the natural expansion and contraction of the U.S. cattle herd — which is tied to supply and demand.

A sharp contraction in the U.S. cattle herd typically occurs every eight to 12 years.

This year, the situation has been worsened by a severe drought that is forcing ranchers to cull their herds.

For consumers, the high price of beef is forcing many to seek out alternative protein sources and trade down to cheaper meats such as poultry.

Despite smaller herd numbers overall, beef production has increased in the U.S. because ranchers are breeding and producing bigger cattle.

Stocks of leading beef producers include JBS (NYSE: $JBS ) and Hormel Foods (NYSE: $HRL ).