Coffee’s price has risen by 76 percent this year, to CZK 109.5 per kilogram, continuing a trend that began last year. It is thus the most expensive in 11 years. Last year’s increase was the highest percentage increase since 2010.
This is according to an analysis by XTB. However, the correlation between the price of coffee on the commodity exchange and the price in a coffee shop is only very loose; the firm pointed out.
The rise in coffee prices was mainly driven by rising transportation costs and bad weather in vital coffee-producing countries. According to the analysis, the bad weather in Brazil is still ongoing, and the coffee price may continue to grow for at least another month until the rainy season ends in South America.
Brazil, the world’s biggest coffee producer, was hit first by drought, then by frost, and suffered from heavy rains. Because of this, the price of coffee has doubled over the past year. Speculative investors have reacted by betting on further price rises. So far, the cost of coffee has risen to its highest level in a decade, which has greatly supported the disruption of supply chains worldwide.
Many other factors have a significant impact on the price of a cup of coffee in a coffee shop, such as the cost of transport, energy, packaging materials, and labor.