Halloween will be giving consumers a fright this year, and right in the goodie bag.
While Bloomberg Business is reporting the Federal Reserve will most likely keep policy rates close to zero at this week’s meeting, those calling for raising rates have a holiday-themed statistic to rely upon: trick-or-treat candy prices are expected to rise.
Candy and chewing gum prices – a subset of the Consumer Price Index – will be up 4.2 percent over last year, according to a report from IHS Global Insight, a division of Colorado-based IHS Inc., which provides industry analysis.
IHS economist Chris Christopher says that is the largest jump in four years.
To blame for the recent treat inflation are rising cocoa prices, part of a sustained upsurge due to the effects of El Niño weather patterns. Spending on candy is also expected to be up less than 1 percent in 2015, still an encouraging sign since 2014 spending jumped 5 percent.
“Americans are likely to spend billions on Halloween candy, costumes, and other ghostly paraphernalia this year,” Christopher writes. “Halloween consumer spending on candy is expected to reach $2.2 billion, almost $18 per household.”
For those looking not to participate in Halloween, yet still want to enjoy treats, there is one bright spot to look forward to – deep discounts on candy starting Nov. 1.