With droughts in Brazil, the lingering effects of the COVID pandemic and problems with supply chains let alone war in Ukraine it's not looking good for inflation and, as one of the worlds most traded commodities, coffee. So how painful will this be and will the price of coffee keep increasing?
It's true that we have seen huge increases in the cost of green beans over the last year. The cost of some of our green beans have increased by 109% which we know is not sustainable. But we've all seen real price inflation from food to fuel so we could guess there will be some pain here.
There does remain some medium term pressure on prices which means we will probably see another 10-15% increase in roasted coffee prices passed to our customers over the coming months but we hope this will settle going into 2023.
The signs are promising in Brazil where production is finally increasing with the resources present to capitalise on this. Hopefully we will won't suffer from further variants of COVID and that the war in Ukraine comes to a speedy peaceful end.
With that we might just get back to normal. If we can remember what that was.