By Taryn Phaneuf | NerdWallet
It wouldn’t be Easter without colorful eggs and chocolate bunnies. But threats to the supply of these holiday essentials are pushing prices up at a time when shoppers are worn out by years of high inflation.
Here’s a look at why inflation is having an outsized impact on your Easter basket.
Cocoa prices soar with no relief in sight
Chocolate prices have risen nearly 38% since 2020, the year before inflation started heating up, according to NielsenIQ market research data provided to NerdWallet. Recently, price hikes have stemmed from the soaring cost of chocolate’s key ingredient: cocoa.
A series of bad weather events, as well as disease, have devastated cocoa crops in West Africa, where about 70% of the world’s cocoa is grown. As a result, cocoa prices are at record highs.
So far, there aren’t any signs of cocoa prices turning a corner, says Billy Roberts, food and beverage economist with CoBank, a Colorado-based lender specializing in agriculture. Initial reports on next season’s harvest — which occurs in late summer and early fall — aren’t as optimistic as the industry hoped. Until crop yields improve, cocoa prices will likely stay high. read more