The worst drought in 91 years in the top Arabica coffee producing region of Brazil and the worst cold snap since 1994 in the same area coupled with a lack of shipping containers to move it from South America to your breakfast table means you’ll soon likely be shelling out more for a cup of joe.
You’ll probably pay more for roasted or ground coffee purchased at a grocery while you may not see as much of an increase at your favorite coffee shop. There, prices already reflect, in addition to brick and mortar, the cost of WiFi and general ambiance. In the grocery the coffee price is almost completely determined by the contents of a bag. T
he U.S. Bureau of Labor Statistics last spring found an 8.1% per pound increase over a year earlier. Meanwhile, they’re still assessing crop damage in Brazil to see how long-lasting the impact of this season’s double hits will be. If trees are lost, the replants won’t be productive for seven years.
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