Price of chocolate surges amid global inflation bedlam
New analysis by a leading Asia Pacific-based asset manager has shown even the price of chocolate is not immune to the current global inflationary pulse.
Firetrail Investments has compiled a global chocolate index which shows the chocolate price has surged 32% so far in 2022.
“With all the talk about rising commodity prices and food inflation, spare a thought for the Easter Bunny this year,” said Firetrail Investments’ Head of Investment Strategy, Anthony Doyle.
“Class IV milk, which is used to produce butter and milk powder, has risen by 67% to around $US25 per hundredweight. Class IV milk prices are now at record highs. Raw sugar has risen from $US15.75 to $US20.31 per pound, while the price of cocoa has risen from $US2,472 per metric ton to $US2,667.
“Prices of milk, raw sugar and cocoa – like many other commodities – have ratcheted higher following pull-back of supply following pandemic lockdowns in 2020. With economies re-opening, demand has shifted higher for many commodities, resulting in higher prices.”
Significant US inflation print for March
The latest inflation print just out of the United States shows inflation hit 8.5% in March, compared to the same month last year. It’s the highest annual increase in more than 40 years.
When comparing February 2022 to March 2022, inflation rose 1.2%.
According to the U.S. Bureau of Labor Statistics, some of the biggest contributors to this latest Consumer Price Index (CPI) increase are:
- Gas: +48%
- Used Cars: +35.3%
- Airline Fares: +23.6%
- Car & Truck Rentals: +23.4%
- Meat, Poultry, & Fish: +13.8%
- Milk: +13.3%
- Eggs: +11.2%
- Coffee: +11.2%
- Electricity: +11.1%
- Bread: +7.1%
In the Asia region, inflation is increasingly being felt in emerging markets. Recently in Indonesia protests over the rising cost of essential items have broken out in Jakarta.
While Asia Markets recently reported on the economic crisis in Sri Lanka, where hundreds of thousands of residents have fallen into poverty in recent months, unable to afford basic necessities due to inflation and the devaluation of the Sri Lankan Rupee.