Global coffee prices soar 20% year-over-year, hitting record highs

According to Forbes, global coffee prices have jumped over 20% since last year, reaching their highest level since August 2024. The surge has been driven by severe droughts in Brazil, reduced yields in Colombia, and new U.S. import tariffs imposed by President Donald Trump’s administration. The combination of weather shocks and trade restrictions has tightened global supply, sending prices soaring.

Source Forbes

In July, President Trump introduced new tariffs on South American coffee imports, claiming it would protect domestic markets. However, the move has added further strain to an already fragile supply chain. Brazil’s coffee production is estimated to have dropped by 15%, while inventories hit their lowest level in a decade.

The International Coffee Organization reported that arabica prices averaged $2.45 per pound in September, with analysts warning that inflationary pressures will continue through the end of the year. Economists expect rising coffee costs to contribute to higher consumer inflation across the U.S. and Europe in upcoming CPI reports.