Coffee Prices Soar

Ben Bernanke's money printing is about to hit you smack in the face, every morning.

International coffee prices last week hit a seven-month high, rising to $1.28 per pound, up 22 per cent from their December low, in New York trading.

The spot price of Colombian coffee – which commands a premium because it is sought by gourmets – jumped to almost $2.20 a pound, a 12-year high, according to FT.

While Bernanke is the main cause of the problem from the demand side, there are also supply side factors kicking in. The crop in Colombia, for example, was damaged by heavy rains severely impacting supplies from that country.

Kraft, owner of the Maxwell House coffee brands, raised retail prices on its Colombian blend by almost 19 per cent last month due to the rising prices of Colombian coffee beans.

And, don't think you can sweeten this harsh news with a little sugar.

Sugar prices in New York and London rose last week to their highest in almost three years. White sugar prices rose above $450 a ton, a 52 per cent gain since mid-December.