If you noticed coffee suddenly getting a whole lot more expensive, congratulations – you were correct.
Unfortunately, the pain is just beginning.
Buried in the July inflation numbers (a little under 3% – increasing but not yet unreasonable) was a scary tidbit – coffee inflation was 15%.
The price of a pound of ground coffee is now $8.41, which means coffee prices have doubled over the last five years.
Unfortunately, that was before a 50% tariff on Brazil took effect earlier this month.
Brazil is, of course, one of the primary suppliers of coffee to the United States. So that 15% price hike is about to be supplemented with a 50% tariff.
How much of that will consumers ultimately have to pay?
Well, we can’t know that quite yet. Currently consumers are only eating around 10% of tariff costs right now according to surveys, but that’s expected to grow to ~65% in the next year.
So, suffice it to say – the cup of coffee you’re drinking right now may be the cheapest cup you have for a long time to come.
What impacts are you seeing from tariffs? Please share! Drop a comment and give us the scoop.
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