Inflation drinks morning coffee

So, within about 100 meters, a few businesses have coffee as their star product, and their prices can skyrocket. From 1.45 to 2.20 Euros. Reason? this continued rise in food prices and Energy. “A coffee with milk with takeout container and lid can give the hotel operator an advantage of about one euro,” says Toni, a manager at a French cafeteria owned by the franchise. This organization has become the agenda of the region in recent days. Coffee with milk went from two euros to twenty cents, and a large coffee to thirty cents. “No one has complained yet, and we haven’t noticed that ordinary people have stopped coming,” says Toni, who assures that the increase is generalized to all of the brand’s stores. “Everything is rising. Coffee, light from the roof… and gas, impressive. Moreover, sugar increased by 25%if it was 80 cents a kilo before, it now reaches euros”. The most striking thing about its establishment is that a ‘drink’ costs seven euros.

It’s not the only coffee shop in the area to suffer from prices. Just two meters away is another place that offers their coffee for twenty cents less. “We’ve been at these prices for a long time, but we’re considering increasing them,” said Oriana, adding that “the price of coffee and everything in general has gone up a lot.” He doesn’t know what the benefit of a single coffee with milk in his cafeteria, but they have already started to increase the amount they offer. Very trendy ‘brunch’ comes to unite tables of up to 100 people in its bar, between pancakes, mimosa and eggs Benedict, coffee is never lacking. “The difference between a coffee and a ‘gin and tonic’ (about 8 Euros at your bar) seems very slight to me. Finally, alcohol is cheaper. “This is illogical, but we will try to change it.”

And competition is guaranteed. The liquid element, with the largest terrace in front of these two bars €1.95. “It has gone up several times in the six years I’ve worked here, costing $1.35 at first,” says one of the waiters.

Everyone experiences the same reality in this most ‘in’ area of ​​Madrid, but some prefer to prioritize customer satisfaction. “I have the cheapest coffee in the area, I’d rather make more volume than increase volume and sell less“Daniel, who owns one of the most famous bars on the block with a mythical tavern vibe, comments. Among his clients: average workers, blue-collar workers, office workers… his coffee with milk costs 1.45 euros. Pretty good. haggle. “Everything has increased, electricity, milk, coffee… about two and a half euros.He comments while he prepares the cups and cups non-stop. It produces more than 200 coffees a day, and although the price is striking, it also increased for the last time at Christmas. “Also it all depends on the coffee. It’s bought. I buy the mid-range of various grades”. Actually Daniel doesn’t have the cheapest coffee, it can cost up to a euro at another franchise nearby, but you have to be brave to drink it.

None of this is unimportant. Prices have skyrocketed uncontrollably since the start of the war in Ukraine. The shopping cart is twice as expensive, and it’s no different for hoteliers. Despite this, core products fell in this month of September. According to FAO (Food and Agriculture Organization of the United Nations), sugar price index September averaged 109.7 points, or 0.8 points (0.7%) less than in August, making it the fifth consecutive monthly decline and the lowest since July 2021; in the case of Dairy productsSeptember averaged 142.5 points, i.e. 0.8 percentage points (0.6%) less than in August, representing their third consecutive monthly decline, but still 24.4 points (20%) from a year ago. 7) on.

Same in the Eurozone.

On the other hand, in the Eurozone as a whole, coffee prices increased EU an average of 16.9% in August this year Compared to the same month of 2021. Milk and Candy. However, these figures are approx. 40% in some countries.

According to Eurostat, the European Statistical Office, in August 2022 the highest annual food increase was recorded in sugar, with significant increases in Poland by 109.2%, followed by Estonia (+81.2%), Latvia (+58.3%), Bulgaria ( +44.9% and Cyprus (+43.2).

Regarding coffee, Finland recorded a +43.6% increase in August, followed by Lithuania (+39.9%), Sweden (+36.7%), Estonia (+36.4%) and Hungary (+34.3%).

Hungary, Lithuania and Croatia saw significant price increases for whole milk and low-fat milk. The largest annual increases in whole milk prices among EU Member States in August this year are Hungary (+51.7%), Lithuania (+46.8), Croatia (+43.5), Czechia (+43.3) and Latvia (+40,1). %) and skimmed milk in Lithuania (+50.2%), Croatia (+41.2%), Estonia (+38.9%), Germany (+33.6%) and Hungary (+30.1%) ).