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