Halloween is not that far in the future and you may need to prepare yourself for more expensive candy this year. Why is that? The reason is that there currently is a shortage of the key ingredient of sugar.
The Wall Street Journal reports that costs for sugar are soaring and the culprit is an agriculture policy that requires 85% of U.S. sugar purchases to come from domestic suppliers. The price of raw sugar increased to its highest level since January 2011 at $42.56 per pound in May and the USDA says the refined beet sugar price increased to 62 cents per pound. That means that some candy suppliers are refusing orders and cutting production but candy shortages at Halloween are unlikely. Brad Rubin, food and agribusiness analyst at Wells Fargo says “While candy prices have experienced upward pressure from the cost of sugar, Americans should have plenty for the fall holiday.”
The downside, of course, is that prices are expected to be higher for your Halloween candy. And that’s not all – Rubin predicted in April that the price of fresh produce that includes tomatoes, lettuce, and strawberries would also be increasing due to bad weather and flooding in California. It’s just more bad news regarding inflation and high prices.