coffee prices plumetting!!

Discussion in 'The Cafe'' started by sarimento1, Jun 16, 2019.

  1. Doc4

    Doc4 Moderator Emeritus

    Giving up coffee...

    Hmm ...

    A 2017 study published in the Journal of the Royal Statistical Society found that inventing statistics is actually more accurate at least 63% of the time. The authors concluded that a sincere attempt to "follow your gut instinct" and use your "BS detector" allows people to rely on years of their own subconscious observations rather than just a short period of time "intentionally looking" for a conclusion.

    Fascinating!

    If I have breakfast at your house, I'm skipping the porridge.
     
  2. Coffee is commodity and price fluctuations are the norm. Enjoy the drop because it will, like the South, rise again.
     
  3. The Knize

    The Knize Moderator Emeritus

    Supply is up, so prices are down. Seems to me I have read other causes, too, but apparently--who knew!?--Brazil came off a long drought in 2016.

    Nothing to get too excited about for the consumer. Crude oil prices are way down recently. Anyone notice the price of gas at the pump taking a big drop?
     
  4. Doc4

    Doc4 Moderator Emeritus

     
  5. Coffee commodity prices may be down, but coffee is still a favorite example of inflation. I had to go back and find the transcript of Nightly Business Report last night to see why they were talking to people about the high price of coffee. It was mostly the standard commentary about coffee by the cup at retail being expensive.
    http://nbr.com/2019/07/12/transcript-nightly-business-report-july-11-2019/

    Excerpt below:
    GRIFFETH: And Steve just mentioned today`s inflation data where consumer prices posted their biggest gain in nearly one and a half years in June. According to the Labor Department, the so-called core consumer price index, which excludes food and energy, rose by 0.3 percent. That was more than expected and it followed four straight monthly gains.

    Now, food and energy are often excluded because those prices are considered volatile on a month-to-month basis but it`s also the stuff we pay for every day, including things like coffee.

    (BEGIN VIDEO CLIP)

    UNIDENTIFIED MALE: It`s increasing like everything is increasing because
    salaries are increasing but it goes with the — it is like gas. You need
    it.

    UNIDENTIFIED FEMALE: As a college student, I think it is a little bit
    like, yikes, when you realize shall oh, it`s like 5 bucks for like this
    much coffee. So, it`s a little like, you have to cut back.

    UNIDENTIFIED MALE: Yes, price went up significantly. I remember when
    coffee was 50 cents a cup.

    UNIDENTIFIED FEMALE: A medium at Dunkin` Donuts is $2.85. If that goes to like $4 and something, I don`t think I would do it.

    UNIDENTIFIED MALE: I haven`t paid attention to the pricing. It is kind of
    a necessary evil. I love coffee and whatever goes up, I`m just going to
    deal with it.

    (END VIDEO CLIP)

    GRIFFETH: So some people are seeing inflated prices at their local coffee
    shops, but the government data and the Fed say that inflation remains tame. So who has it right?

    Bob Brusca is with us tonight. He`s chief economist at Fact and Opinion
    Economics.

    Bob, first of all, welcome. Thanks for joining us tonight.

    BOB BRUSCA, FACT & OPINION ECONOMICS CHIEF: Thank you.

    GRIFFETH: You know, there`s that old saying people will always complain
    about the price of bread and gasoline and in this case coffee, but is there
    an especially glaring disconnect these days between what we are paying on
    an everyday basis and this tame inflation data reports that we get from the
    government and Fed?

    BRUSCA: I don`t think so. I think the problem is that the people tend to
    focus on prices when they go up, and I think the other problem is that it
    is a low inflation environment. People`s incomes don`t go up very much.
    When your income isn`t going up very much and prices start going up, you
    really begin to notice it and it hurts.

    HERERA: So, Bob, what impact do you think it will have? I mean, we heard
    some people say that if prices went up too much, that they would stop
    buying. Other people said they need their coffee, they`re going to keep
    buying.

    So if, indeed, it is more noticeable because wages are not going up as fast
    as they used to, what impact might that have?

    BRUSCA: Well, people can buy beans, grind them at home and make coffee and carry it to work. It will be a lot cheaper.

    ...​
     

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