Coffee Drinkers Roasted By Record Prices

It’s hard to beat sipping a hot cup of coffee in the morning. But that cup of joe could turn bitter as prices soar. 

To the moon: Brazilian coffee prices have risen more than 50% in the past three months. Adverse weather in the country has led to tightening supplies and ultimately higher prices.

The coffee market participants are dealing with extreme volatility as prices repeatedly hit new all-time highs.

But wait, that’s Brazil: Brazil might be the second-largest global coffee consumer. But the U.S. is the largest coffee drinker.

The problem? Most of the coffee consumed in the U.S. is imported from South America. Disappointing production in Europe and Asia has also pressured supplies. Output struggling to keep up with rising demand has pushed global inventories to multi-year lows.

Skyrocketing coffee prices have led to “fake coffee” appearing on supermarket shelves in Brazil. The beverage is sold at a third of the price of traditional coffee, but the product lacks real coffee beans. The new coffee drink’s regulatory approval is also in question.

Bonus news: Coffee isn’t the only item at the breakfast table biting consumers. Eggs, orange juice, and cereal have been facing inflationary pressures due to limited supplies and high costs.