We're all bored of hearing and reading about inflation, but our ears pricked up when we heard that coffee prices are at their highest level for more than a decade, at ~$2.50 per pound.
Few commodities invoke emotion like coffee, with 62% of Americans drinking coffee every single day — each one of which gets through 3.1 cups on average.
The caffeine bean supply machine
The most important source of supply for our global coffee fix is Brazil, which churns out more than 37% of global production. Unfortunately, Brazil has been hit by lower-than-expected temperatures, drought and even some frost — which are hurting its coffee crops and output. Ethiopia, which accounts for about 4% of global production, is also seeing supply disruptions as the escalating civil war, that has seen schools close and rebels take control of some towns, continues. Ongoing shipping bottlenecks are also playing their part.
So, considering that wholesale prices have doubled since this time last year, you'd be forgiven for worrying that the price of your grande double-shot hazelnut latte is about to double as well — but that's unlikely.
