Coffee shops are now charging almost $5 on average for a cup of coffee. Inflation and drought could push prices even higher.

It’s not your imagination; the price of a cup of coffee has increased.

The average price of a single cup of coffee in coffee shops across the nation is now $4.90, a 7.6% increase from this time last year, according to NPD Group data cited by The Wall Street Journal. Even brewing coffee at home is now more expensive, according to data from the U.S. Department of Labor: coffee prices in July rose 20.3% year-over-year.

The cost increases appear to be due to two factors: inflation and weather.

Even though inflation moderated to 8.5% in July, prices remain high in the United States, particularly for food. The price of groceries increased by 1.4% between June and July, while restaurant meals also increased in price. According to data from the Labor Department, the cost of eating away from home rose 7.6% in July compared to the same month a year prior.

In the case of coffee, however, inflation is not the only factor influencing pricing. In Brazil, the world’s largest coffee exporter, arabica beans, a type of high-end coffee plant, were damaged by drought and frost, resulting in crop failure. The Wall Street Journal reported that some farmers estimate their yields could be cut in half as a result, which would push the price of coffee even higher.

Despite these obstacles and the accompanying price increases, it appears that coffee companies are not losing customers.

Read more • businessinsider.com