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Bidenflation is Wrecking Your Mornings: Coffee Prices Spike Dramatically

Sorry coffee lovers, but coffee prices are on the rise, and only plan on getting pricier. Since coffee is such a large part of most of our everyday lives, “it would take a lot to change consumer’s coffee habits,” Darren Seifer, food and beverage industry analyst at research firm NPD Group told Bloomberg.

Meaning, that while coffee prices may be on the rise, it won’t stop most of us from consuming it. See is recent coffee prices in the chart below and current prices here.

Coffee Prices December 2021Arabica coffee futures are about to register their largest annual gain in a quarter-century due to a global deficit. Arabica coffee futures jumped 78% to about $2.30 per pound in New York this year, putting it on track for the best year since 1994. See coffee prices showing the annual change below and learn more here.

Coffee Prices December 2021 bt PercentagesThe rise in coffee prices is part of the greater commodity supercycle where prices in all commodities are surging. This part of the currency debasement – inflation story that has hit globally since the start of 2021. However, the coffee price rises can also be blamed on conditions with coffee producers.

Brazil considered one of the world’s largest coffee bean exporters – faced extreme weather conditions in July 2021 (including an unusual frost and drought), which has severely impacted its crop of coffee this season. The shortage in bean growth has since led the country to raise its prices on coffee beans being exported.

According to a recent Barclays note, US importers like Starbucks are hedged out for more than a year to deal with price fluctuations. Though JM. Smucker, which owns the Folgers and Dunkin’ coffee brands, recently warned that supply chain disruptions are rising costs that will impact its business.

In other words, price hikes at your local cafe have yet to come. It’s only a matter of time before coffee inflation strikes consumers in 2022.

 RWR original article syndication source.