Coffee prices are percolating
Posted: Monday, May 30, 2011 6:01 pm
NEW YORK (AP) — People are paying more to fuel up these days — on coffee.
Coffee price increases have outpaced even the hike in gasoline prices the past year.
A one-pound can of ground coffee sold for $5.10 in April, up 40 percent from $3.64 the year before, according to the Department of Labor.
By comparison, a gallon of regular gasoline cost $3.83 on average on May 24, up 37 percent from a year earlier.
And while fuel prices are expected to stabilize, coffee increases could continue for some time because the prices that coffee companies pay for unroasted beans are still climbing — fast.
J.M. Smucker Co., the maker of grocery store stalwart Folgers and of packaged varieties of Dunkin’ Donuts coffee, said recently it is raising the prices of most of its U.S. coffee products by 11 percent, its fourth increase in a year.
Kraft Foods Inc., Peet’s Coffee and Tea Inc., and Starbucks Corp. also recently hiked their prices for brewed and packaged coffee.