Coffee Prices vs. Gasoline Prices
In January 2008 coffee prices (per pound) and gas prices (per gallon) were about the same: $3 (see chart above). Coffee prices have more than doubled to $6.60 per pound, making the increases in gas prices to $3.80 in April look relatively minor. Over the last year, coffee prices have increased by 77% compared to the 34% increase in gas prices.
What's next? Congressional investigations to determine if speculators are driving up coffee prices? Allegations of "price gouging" at Starbucks? Investigations of "windfall profits" for "Big Coffee"?
Update: The units for coffee are now correctly stated in $/kilogram (not $/pound as originally labeled, I apologize for the mistake). The main point here is that coffee prices have increased by 77% over the last year, or more than twice the 34% increase in gas prices. The fact that the units are different ($/gallon vs. $/kilogram) doesn't change the fact the coffee price have increased twice as much as gas prices. No adjustment for inflation is necessary here because we are comparing two nominal prices.