Price shock: why the cost of coffee is boiling over
According to a new estimate from Eurostat, the cost of your average shopping trip increased by 8.2 percent in the year leading up to the end of May.
According to Kantar, this will result in significantly larger grocery bills, with the average household paying €330 more per year.
However, not all price increases are the same, and a multitude of factors influence different products in various ways.
To help make sense of the current situation, we’ve taken a closer look at a variety of common grocery items.
Each has experienced significant price increases, but each has a different explanation as to why.
Brexit has wreaked havoc on Ireland’s supply chain, but it has not been the only issue. The pandemic is the second major issue.
In the early stages of the pandemic, the world’s factories and ports essentially shut down, with the exception of the most important factories and ports.
This caused massive cargo ships to back up at ports with nowhere to go, and empty shipping containers to accumulate because there was no way to load them onto ships.
And it is not the case that once ports reopen, everything resumes normal flow; these backlogs require time to unwind.
The fact that we also experienced a blockage of the Suez Canal and rolling port closures in China only exacerbated the situation.
So, what is the consequence?
Prior to the pandemic, the global supply chain made it simple and often inexpensive for businesses to acquire goods from across the globe.
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Source: Coffee Talk