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Chocolate Prices Set to Rise

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Chocolate prices are expected to rise as the cost of cocoa, a key ingredient, continues to increase.

Statistics from New Zealand show grocery food prices went up by 2.4% in the past year, partly due to higher chocolate costs. The price of a 250g block of chocolate has increased by 20% over the year, reaching $5.56 in August.

The rising cost of cocoa is a major factor, with global cocoa prices soaring by over 170% due to supply shortages. Whittakers, a chocolate manufacturer, said cocoa supply constraints have significantly pushed up costs, affecting the price of chocolate. They try to keep prices stable, but continuous cost increases may force further price hikes.

Experts like Brad Olsen from Infometrics warn that more price increases could be on the way. He noted that cocoa prices have doubled since last year and are nearly triple the rate of two years ago. Cocoa supply issues in West Africa, where 75% of the world’s cocoa is grown, are a major cause, with dry weather impacting production.

Despite higher prices, people still consider chocolate a “necessary luxury,” so many are likely to keep buying it. However, with costs rising and supply issues persisting, chocolate may soon become an even more expensive treat.

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