Latest News

Food Inflation Is Coming for Your Valentine’s Day Cupcakes

© Reuters.

(Bloomberg) — If surging cocoa prices have you planning to gift cupcakes instead of chocolates this Valentine’s Day, you’re still out of luck: Even flour is getting too pricey thanks to red-hot inflation.

The building block for most cookies, cakes, breads and pastries has spiked 10.3% in the past year, the biggest jump since 2011, U.S. government data released Thursday show. That’s among the highest inflation rates for any category of food outside of meat, eggs and oils.

The cost of basic ingredients has been climbing amid supply chain woes and labor shortfalls, and wheat is no exception. This week, the U.S. Department of Agriculture in its widely followed global supply and demand report pared back its estimate for world wheat supplies, signaling some tightness ahead. Meanwhile, “with higher wheat prices, we are seeing some pushback” from retail consumers with sticker shock, said Farm Futures analyst Jacqueline Holland.

Rising prices have already started to hit U.S. bakeries, which buy much larger quantities than your average household. At Baked and Wired in Washington D.C., menu prices have already gone up “at least twice” since the pandemic started, said representative Ryan Henson. Now, it’s been forced to scale back cake production, too, thanks to skyrocketing prices of flour, along with milk and eggs.

Related: U.S. Inflation Charges Higher With Larger-Than-Forecast Gain

The bakery used to sell cakes every day of the week, but since last month, it only sells limited quantities on Saturdays. Before the pandemic, a 50-pound bag of flour cost $8; now it’s roughly $17.

“It’s crazy,” said Henson. “We can’t offer as many things as we normally do.”

Price-sensitive Valentine’s Day shoppers won’t be able to turn to chocolate for help, either. Cocoa prices in New York neared a two-year high Thursday amid dry weather that has curbed harvest yields.

©2022 Bloomberg L.P.

Food Inflation Is Coming for Your Valentine’s Day Cupcakes

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News