Throughout the world both people and nation states are struggling to contend with rising inflation and it seems that the cannabis market is now being affected itself.
In the United States inflation rose to 9.1% and there have been similar rises in the United Kingdom and wider Europe. While the United Kingdom awaits their new Prime Minister the United States has recently passed the Inflation Reduction Act.
Many reasons have been given for the cost of living crisis. Russia’s war in Ukraine, the long term effects of Covid-19 along with the extreme injection of money into the economy from governments have all been cited.
Supply chains have been disrupted, and available materials have reduced meaning that consumers are paying more for their goods than they have in the past 40 years.
Cannabis is also feeling the pinch from inflation. From January 2021 to February 2022 prices actually fell approximately 4%. However, the latest report from GreenGrowth has found that one in four retailers have or are planning to raise their prices by 10%.
The key issues for retailers appear to be the rising cost of labour accompanied by accessing the required materials to make cannabis for the regulated retail market.
These issues may stem from the longer term effects of Covid-19 but with people in lockdown at home there was a boom in the cannabis industry with some retailers reporting a 500% increase in sales.
As the signs of inflation show no signs of slowing down within the cannabis market it remains likely that your retail outfit prices will continue to rise.
