Americans are feeling the pinch as coffee prices soar to near-record levels, driven by global production issues and rising tariffs on imported coffee. The latest consumer price index shows coffee prices have increased by 20.9% year-over-year as of August, marking the highest annual gain since 2011. This trend is largely due to the U.S. dependence on imported coffee, with less than 1% of coffee consumed domestically being produced in the country. The situation is worsened by tariffs that have recently been imposed on coffee imports, particularly from Brazil and Vietnam, which together account for about half of the world's coffee supply.
• Coffee prices rose 20.9% from last year and 3.6% from July to August.
• Roasted coffee prices increased by 21.7% year-over-year, while instant coffee saw a 20.1% rise.
• Global coffee prices surged 38.8% in 2024 due to supply disruptions from adverse weather.
• Tariffs on coffee imports have further contributed to rising prices.
This price increase matters because it highlights the vulnerability of U.S. consumers to global market fluctuations and trade policies. Coffee is a staple for many, and rising costs can strain household budgets. As tariffs continue to affect prices, consumers may have to adjust their spending habits or seek alternatives, impacting overall consumption patterns in the coffee market.
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