Another day, another price hike.  Coffee prices are going up.  The Wall Street Journal explains the price of coffee has spiked 17 percent over a span of five years.  Overall, inflation was only 10 percent in comparison.  The Journal reports the price of coffee is set to go even much higher.  Last year there were some failures of coffee crops.  Additionally, the blockage of the Suez Canal several weeks ago pinched the supply chain and now ports in the United States are backed up.

The worst part of the increased costs hasn’t yet arrived.  It may come along as we move into January of next year.

While much of the coffee consumed in the United States originates in this hemisphere (Brazil and Columbia), there’s also a worldwide shortage of shipping containers.  Fewer containers lead to bidding wars for containers still available.

Weather has also played a part.  Hurricanes in Central America washed out roads used for coffee shipments.  Brazil experienced a drought last year and it hammered the Arabica crop.  The effects from the drought haven’t even yet been felt in the United States.

Oh, and many of your favorite coffee stops are having a very difficult time finding staff.  In order to get people to wait on you, the shops will offer more pay.  You often get that passed along in price per cup.

The worst part of the increased costs hasn’t yet arrived.  It may come along as we move into January of next year.

My personal coffee consumption isn’t what it used to be.  I’ve gone from 12 cups a day down to just two.  I usually drink both cups before going on-air and then none for the remainder of the day.  It makes it easier to sleep at night!  Until I worry about inflation.

 

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