Halloween Spending Expected To Hit Record Highs As Sugar Prices Continue To Rise
The spending on customers on costumes, candy, and decorations is projected to be around $11 billion.
Having sugar is becoming a lot more expensive, but that has not spooked the enthusiastic fans of Halloween.
In September, the price of sugar and sugar substitutes has increased by 7.7% in comparison to a year before, while candies and chewing gums rose by 7.5%. Costs of other candy rose approximately 3% compared to the previous year, as per the recent Consumer Price Index of the Bureau of Labor Statistics.
On a yearly basis, the entire sugar and sweets category increased by 6.5%, which also includes a 0.3% jump in comparison to the previous month.
That is higher than the overall food inflation, which has increased by 0.2% in September over a monthly basis of 3.7% over the years. The price of groceries, or food at home, increased 0.1% and 2.4% respectively.
“A lot of that increase that you’re seeing is attributed to what the world’s supply is going to look like,”
Mintec US sugar analyst Andraia Torsiello told Yahoo Finance.
“India is actually a major exporter and they’ve had really poor weather conditions, so they’re suffering from a really dry monsoon period.”
It is the result of a different climate pattern, which is known as an El Nino over Asia, as said by David Branch of Wells Fargo.
“It’s impacting India, Thailand, and Australia too.”
As a result,
“India and Thailand did not get the monsoons they normally get,”
the branch added, which allowed both governments to shut down exports.
“The reason why the prices are high and remain high is not only because of the inflation in the economy, but also just the supply not being as available as it was,”
Torsiello further said. Yet another reason for the increase in the price of candies is the increase in the price of cocoa, which was up by 46%.
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