Americans are hooked on sugary donuts and may find out next month that their favorite breakfast snack is about to experience a price increase because of rapid food inflation.
America's favorite doughnut company and coffeehouse chain Krispy Kreme, Inc. warned this week that higher costs for donut ingredients, such as flour, butter, milk, oil, and sugar, are forcing the company to raise prices in September.
CEO Mike Tattersfield told Yahoo Finance this week that price hikes "won't be exorbitant."
"We are really disciplined on pricing. We are a dozens business, so we do always pay attention to an accessible price point. So when you think about the pricing that will happen on a dozen you won't really see it that much," Tattersfield explained about next month's price increases.
He said the cost of one donut would be approximately $1, adding, "We do have pricing power, and we are really thoughtful."
Price increases come as no surprise considering the Food and Agriculture Organization of the United Nations (FAO) has reported meteoric price increases all year for cereals, oilseeds, dairy products, meat, and sugar. The FAO Food Price Index remains near-decade highs.
Recently, Brazil's top producing regions for sugar have been devastated by the worst weather in decades and could leave a lasting impact on prices. What this means is that sugar prices might remain elevated well into 2022.
The combination of soaring food inflation and natural disasters affecting global crop yields is finally being pushed through the consumer, as per Tattersfield's comments.
This fall, the inflation shock will also be seen at the grocery store, where prices could jump 10-14%.
Meanwhile, the mainstream media and government are not being honest with the average joe about rapid food inflation.
But hints from the Biden administration's need to boost the Supplemental Nutrition Assistance Program, or SNAP, by 25%, suggest that food inflation is a severe problem plaguing all Americans and crushing the working poor the hardest.
So much for "Build Back Better."