It’s no secret that the cost of living has increased dramatically since the summer. We can thank runaway inflation for this.
Today’s American consumers pay more for their daily expenses, and things might get worse before they get better. In fact, if you’re relying on your morning coffee to get you through the day, here’s some disturbing news. Inflation is set to hit the coffee industry soon, and once that happens, your daily dose of caffeine could become a lot harder to afford.
Coffee is not immune to inflation
On November 18, coffee futures reached their highest level since January 2012. And this year, the cost of coffee has risen by over 80% so far.
This does not necessarily mean that coffee prices will rise immediately. But soon, consumers could start paying a premium every time they want a cup of coffee.
Why are coffee prices soaring? We can blame the supply issues, which are fundamentally the theme of our current inflation situation.
Weather conditions in Brazil have not been favorable in recent months, and as Brazil is the world’s largest supplier of coffee beans, this particular supply chain is now under threat. If coffee suppliers have to spend more to source elsewhere, this cost is likely to be passed on to consumers. The result? Higher prices that are yet to come.
Why haven’t the prices already skyrocketed? One of the reasons is that the big names in the coffee industry usually buy their product well in advance and have different strategies in place to protect themselves against price increases. As such, you might not yet feel the pain when you visit your favorite coffee shop chain. But if coffee prices continue to rise, things could change quickly.
How to deal with rising coffee prices
If you make your own coffee at home, you will feel the pain of price hikes less than those who buy coffee from a local store or chain like Dunkin or Starbucks. If your store-bought coffee is starting to get too expensive to perfectly fit your budget, you may need to consider cutting back on your consumption. That could mean brewing your own coffee a few days a week and cutting down on the number of times you buy it outside of the house.
If you’re really in love with your store-bought coffee and can’t bear to give it up, find another expense to cut back. For the price of one takeout per month, you might be able to treat yourself to 10 days of freshly brewed coffee you love.
Another option? Get a side job to increase your income. This will help you cope not only with the rising price of coffee, but also with the increasing daily expenses, from gasoline to groceries. And while you might think the idea of taking a second job to keep buying coffee is silly, remember that there’s nothing wrong with making an effort to afford things. that give you joy.
Of course, if your savings account balance is healthy and you need to temporarily dip into it to pay for your beloved coffee, this is also an option. But not everyone has savings, or savings outside of an emergency fund, in which case reducing or increasing your income may be the best way to preserve your morning coffee habit.