Here Come The Increases In Coffee Prices

Economic Policy Journal ^ | 4-4-2011 | Robert Wenzel

[blam]

Here Come The Increases In Coffee Prices

Robert Wenzel
April 4, 2011

Price inflation is about to hit from every angle. Since the financial crisis, Bernanke has printed too much money for it not to have a major impact. All indications are that it will hit hard in the second half of this year.

The only persons who appear not to be concerned about price inflation are NYT columnist Paul Krugman and his former Princeton colleague, Ben Bernanke, and other members of the Fed.

But keep in mind, just a few months ago Krugman wrote this:

There’s really nothing here to shake my view that deflation, not inflation, is the threat. Bernanke, who famously said the subprime crisis is no big deal, has been in lock step with Krugman in his lack of concern about price inflation. This is really scary since Bernanke is the captain of the money printing boat, known as the Federal Reserve.

And New York Fed president William Dudley doesn't think there is an inflation problem because as he put it: "Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful. You have to look at the prices of all things." A member of the audience quite correctly shouted to Dudley, ""You can't eat an iPad."

Anyway, here's something more to contemplate while you drink your morning coffee. SFC, again, this time on coffee prices:

If it hasn't already, your local coffee shop is probably about to raise the cost of your morning latte.

Global coffee prices have doubled over the past year, recently reaching a 14-year high and leading national companies like Starbucks to increase prices in recent weeks. Peet's and some smaller Bay Area specialty coffee roasters raised prices in the fall, while others are just now announcing increases. And it doesn't look as if it will stop there... Coffee prices generally fluctuate with the C market, a global commodity futures market that establishes benchmark prices for green arabica beans, the highest-grade coffee. Last spring.

[null and void]

This. Means. War.

[Perdogg]

Coffee prices have been going up for a least 3 years now after the Brazilians figured out that if you increase the price people will still buy it.

[Perdogg]

Bombing of Rio begins in 5 minutes, right?

[chris_bdba]

Already happened for me.We usually buy 15# of beans every 3 months from this wonderful place in Florida.It used to cost me $84 with shipping this last order 2 weeks ago smae 15# it cost me $102. :(

[Palter]

Pretty much Jim Rogers table top investing. OJ, sugar, coffee, etc.

[Perdogg]

And New York Fed president William Dudley doesn't think there is an inflation problem because as he put it: "Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful. You have to look at the prices of all things."

This is essentially what George Gilder told Playboy in 1980.

[Le Chien Rouge]

Coffee has been steadily increasing for a while now.

I’ve been stock piling quite a bit. If the economy collapses and the currency is worthless, coffee makes an excellent bartering item.

[null and void]

I don’t much care who or where we bomb, just as long as we bomb...

[HungarianGypsy]

Nooooooooooooo. Not that I have lattes, but if it’s effecting the price of my beans.....

[blam]

Weekly Indicators: Economy Slowing Due to Choke Collar of High Oil Prices

[null and void]

As long as the price of my morning cup of iPad doesn’t go up I’m happy...

[org.whodat]

Stopped drinking the stuff and glade I did.

[wku man]

The brand I usually buy has gone up $2 per can in the last year or so, so I'm stepping down to less flavorful but still affordable (for the time being) coffee.

Much more of this, and I'll be stuck with looking at pictures of coffee on an iPad 2, which is much more powerful than the iPad 1, but costs the same, according to that schmuck from the NY Fed.

Scouts Out! Cavalry Ho!

[blam]

"I’ve been stock piling quite a bit. If the economy collapses and the currency is worthless, coffee makes an excellent bartering item."

I agree...I have a whole closet of coffee, maybe 150 pounds.

[Terry Mross]

Wife and I have one cup each in the morning. Sometimes we have a cup of decaf at night. It’s simply too expensive.

So, when does soft drinks go through the roof due to caffeine content?

[bigredkitty1]

Also to blame are the last two harvests from Columbia have been less than abundant and of significantly lower quality. The source of this information is my local roaster I have known for a couple of decades. I trust him and his information.

[familyop]

Yuh. Bust ting I ever done, too, too, and didun uffect me tall.

;-)

[PJ-Comix]

BRING IT ON!!! Any increase in prices makes NO DIFFERENCE to The Coupon Whisperer since I get all my coffee for FREE. In fact over the weekend, I picked up about a two month supply of coffee and plan to expand that this week to at least a 4 month supply.

[org.whodat]

LOL