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'Halloween Candy Price Inflation To Rise From The Dead' - IHS Markit

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(Kitco News) - 2018 Halloween candy prices in the U.S. are expected to rise 0.5% compared to last year, after two past consecutive years of price deflation, according to British data provider IHS Markit.

Halloween candy spending is expected to increase 4.2% year-on-year, up from last year’s 2.4% growth. Candy spending is projected to total $2.5 billion, translating to around $20 per household in the U.S.

“Halloween candy prices this October are expected to be jolted back to life amid the specter of a global sugar price surge,” IHS Markit said in a recent report.

According to the report, the price of raw sugar has climbed over 40% over the last month, due partly to declining production from Brazil.

“Candy spending growth in the last several years has bumped around like a hayride. It was moderately depressed in 2012 and 2013 due to special factors including Hurricane Sandy in 2012 and a federal government shutdown in 2013,” the report said.

When candy prices fell by 1.2% in 2016, consumer demand surged, with spending growth reaching 7.6% year-on-year.

Gold has traditionally been seen as an inflation hedge. This year, as headline CPI in the U.S. rose 2.3% in September year-on-year, gold prices declined 7% in the same period.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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