Folgers coffee might be making a comeback. Inflation’s impact on trendy coffee prices signals that grandma might need some credit this Christmas for bringing back affordable morning coffee.
In 2021, customers could purchase a grande iced white mocha for $4.95 and a grande pumpkin cream cold brew for just $4.75 from Starbucks. When Kelsie Marie discovered an old receipt noting these 2021 prices in her Christmas decorations, she broadcasted her surprise on social media, spurring a broader conversation on inflation. People who saw her post agreed with Marie’s concern over inflation. One respondent noted that people can purchase a meal and tip for the same amount they now spend on coffee and breakfast at Starbucks!
As of June 2022, the inflation rate reached 9.1% in the United States. Despite its name recognition and success, even Starbucks has not been immune from the pressures of a poor economy. While the inflation rate has dropped, prices continue to illustrate the impact of this severe inflation. Inflation rates and price levels have failed to revert to their pre-2021 levels.
As prices surge, consumers receive less for more. This phenomenon titled “Shrinkflation” represents corporations’ attempts to counter the pressure of inflation. The Office for National Statistics reported that from 2012 to 2017, 2,529 products in the United Kingdom had been reduced in size. In the United States, companies have decreased the size of “one-third of roughly 100 common consumer products.” In addition to this decrease in size, companies have resorted to “Skimpflation,” recrafting their recipes to save costs. Unfortunately, their thrifty maneuvers may be decreasing the quality received by consumers. Such silent changes often escape the eyes of families. Attempting to thrive in these economic conditions, companies have settled for pulling the wool over penny-pressed shoppers.
Though the pandemic was a catalyst for much of the economic turbulence over the past few years, the federal government’s spending during the Biden-Harris administration also significantly aided the rise in inflation. In the coming months, the Trump administration will receive an economy depleted by such legislation as the American Rescue Plan. If President Trump delivers on his campaign promises, Americans can anticipate tax and price cuts fueled by deregulation and energy dominance. In the near term, coffee drinkers can hope their Starbucks receipts reflect the positive impacts of these policies.