Look out, ‘Burrito Inflation’ is here
ATLANTA, Ga. (CNN) – Bad news for fast food lovers.
Huge price increases for beef and avocados is causing Chipotle to raise menu prices for the first time in three years.
It’s a reality that a lot of restaurants are facing due to rising food prices.
The Cheesecake Factory, Dunkin Brands, and Starbucks all report their quarterly results this week and the cost prognosis for some of our favorite treats don’t look so good all because of price inflation.
This week the government will release a report on June’s consumer price index.
The report from May had some red flags that indicated inflation was heating up, double what was expected.
Americans are already feeling the impact on our wallets.
For example, just last week Hershey’s said it was raising prices 8% due to the increased prices of cocoa, nuts, and dairy.
Dunkin Brands, the makers of Dunkin Donuts, is also expected to announce price hikes this week.
Starbucks meanwhile already increased its prices last month.
And those small price increases on some of the products most of us enjoy, really does have an impact on your food budget each month.
So, what’s to blame?
Much of it is due to bad weather.
A drought in California caused beef prices to reach record highs earlier this year and that same drought has also pushed up prices for avocados.
Another severe drought in Brazil has driven up the price of your morning coffee.
And when it comes to chocolate, rising demand and more bad weather in major cocoa producing countries, like the Ivory Coast and Indonesia has created supply problems and driven up prices.