The price of coffee is about to rise due to unprecedented droughts and other factors' - Unprecedented drought raise coffee price - It seems that coffee aficionados are going to start noticing a price increase very soon.

Yes, coffee may be the next item affected by rising prices and product shortages. According to the Financial Times, the Arabic, the grain you probably have in your desk cup right now, peaked in the last 4 and a half years in early June.

The product shot up to 1.43 euros (1.70 dollars) before settling around 1.27 euros, well above last year's prices, which were around 95 cents, according to data from Macro Trends. Experts say the cause of this inflation is an unprecedented drought in Colombia, protests in recent months, a plague on plantations and a huge accumulation of coffee pending shipment.

Unprecedented drought raise coffee price

"It's a big headache," explains Carlos Mera, an analyst at Rabobank, to the Financial Times. "There is a lot of coffee waiting to be shipped from producing countries, where protests earlier this year have disrupted the flow," he adds.

The German brand Tchibo says it will increase the price by 42 euro cents a pound (that is, 0.45 kilos). Buyers usually have contracts with their suppliers that set the price of the beans for about 3 to 6 months. But when those contracts expire, there could be an increase in prices, according to the Financial Times.

Unprecedented drought raise coffee price

However, coffee is not the only raw material suffering from shortages. Women's products, chicken wings, cars, computer chips, wood and others have trouble balancing demand once the pandemic is overcome.

For chains like Starbucks and Dunkin, which are already facing an industry-wide job crisis, price pressure may be another problem in investors ' minds.

Unprecedented drought raise coffee price

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These are the provinces with the highest retirement pensions and those that have had a greater increase compared to last year

The average retirement pension in Spain is 1,187. 80 euros per month, according to the latest data provided by the Social Security, which refer to the income of June 2021.

It should be remembered that in 2020 pensions gained purchasing power for the second consecutive year, thanks to the fall in prices and the 0.9% increase in benefits approved by the coalition Government in its first Council of Ministers.

However, it should be borne in mind that the amount of retirement pensions is not distributed in the same way in all parts of Spain. There are provinces in which on average a higher benefit is charged than in others, which may lead to certain inequalities between territories.

As can be seen, the provinces of the Basque Country have the highest average retirement pensions, although Asturias slightly exceeds Guipúzcoa. The average pension of the Basque Country is 1,458. 98 euros, being the first autonomous community in the ranking. It is followed by Asturias (1,428. 59 euros), Madrid (1,386.27 euros) and Navarra (1,342. 48 euros).

The autonomous community with the lowest pensions is Extremadura, which stagnates at 986.64 euros, the only one that does not reach 1,000 euros per month. It is followed by Galicia (1,003. 06 euros) Murcia (1,059.80 euros) and Andalusia (1,072. 54 euros).

Only one autonomous community has registered a decline in this regard, Asturias, whose average retirement pension has fallen by 0.1% compared to June last year. The remaining regions have experienced increases of between 0.5 and 2 per cent.