The price of chocolate soars in the chaos of global inflation

New analysis by a leading Asia-Pacific-based asset manager has shown that even the price of chocolate is not immune to the current global inflationary impulse.

Firetrail Investments has compiled a global chocolate index that shows the price of chocolate has jumped 32% so far in 2022.

“With all the talk of rising commodity prices and food inflation, spare a thought for the Easter Bunny this year,” said Anthony Doyle, head of investment strategy at Firetrail Investments.

“Class IV milk, which is used to produce butter and milk powder, rose 67% to around $25 a quintal. Class IV milk prices are now at record highs. Raw sugar fell from US$15.75 to US$20.31 per pound, while the price of cocoa rose from US$2,472 per metric ton to US$2,667.

“Prices of milk, raw sugar and cocoa – like many other commodities – have increased following shrinking supply following pandemic shutdowns in 2020. As economies reopen, demand has increased. increased for many commodities, leading to higher prices.”

Image: Firetrail Investments

Significant print of US inflation for March

The latest inflation release just out of the US shows inflation hit 8.5% in March, compared to the same month last year. This is the largest annual increase in more than 40 years.

Comparing February 2022 to March 2022, inflation increased by 1.2%.

According to the US Bureau of Labor Statistics, some of the major contributors to this latest increase in the Consumer Price Index (CPI) are:

  • Gas: +48%
  • Used cars: +35.3%
  • Air fares: +23.6%
  • Car and truck rental: +23.4%
  • Meat, Poultry & Fish: +13.8%
  • Milk: +13.3%
  • Eggs: +11.2%
  • Coffee: +11.2%
  • Electricity: +11.1%
  • Bread: +7.1%

In the Asia region, inflation is increasingly being felt in emerging markets. Recently in Indonesia, protests against the rising cost of essential items erupted in Jakarta.

While Asia Markets recently reported on the economic crisis in Sri Lanka, where hundreds of thousands of people have fallen into poverty in recent months, unable to afford basic necessities due to inflation and of the devaluation of the Sri Lankan rupee.