Coffee addicts: Get ready for an expensive wake-up call
NEW YORK, March 7 (Reuters) - This was originally published in the Reuters On the Money newsletter, where we share U.S. personal-finance tips and insights every other week. Sign up here to receive it for free.
Caffeine-addicted consumers are in for a bitter wake-up call. (Full disclosure, this newsletter will be loaded with puns.)
The price of coffee is surging. Arabica, the most popular bean, used in most ground roasted coffee, soared 70% in 2024 and nearly 20% this year to an all-time high above $4.30 per pound on February 11.
Robusta – the second-most popular bean that is often used in instant coffee – surged 72% in 2024 and peaked at $5,847 per metric ton on February 12.
But caffeine connoisseurs cannot kick the habit. They may even drink more coffee than is produced globally in 2025 – for the fourth time in the past six years.
To save money, I try to coordinate morning schedules with my in-house barista (a.k.a. husband), who even roasts his own coffee beans, which he buys from Sweet Maria, opens new tab! He usually makes me a cappuccino at home before I head out into the world.
On a recent episode, opens new tab of our Econ World podcast, host Carmel Crimmins talks with commodities correspondent Marcelo Teixeira to find out the reasons behind the jump in coffee bean prices (weather is a big one!) and how it may affect consumption.
Their conversation is worth listening to. And this article explains all of the inflationary factors brewing in the coffee world right now.
Do you find yourself making more coffee at home? How much do you spend a week on coffee purchases? Tell me all about your coffee habits! Write to me at onthemoney@thomsonreuters.com, opens new tab.
IS THE PET SET THE NEW JET SET?
Nobody told me this when we got a dog, but one of the truly hidden costs of pet parenting is paying for someone to take care of our pooch when we travel.
In fact, some pet owners are shelling out more for pet care than they spend on their own vacations. Indeed, when our family went on a vacation in December, the cost of pet sitting ($75 per night for 10 days) rivaled the price of my plane ticket.
Recent research from TrustedHousesitters, opens new tab shows that Miami tops the charts, with pet sitting rates averaging a staggering $163 per night.
Austin, meanwhile, is the most expensive city for cat boarding, with rates close to $60 per night.
To save money, we often do a pet exchange for overnight and weekend trips with friends who live a few blocks away. Our toy poodle CJ stays with them when we are out of town, and their miniature poodle Luna stays with us when they travel.
For longer stays, we share the same pet sitter, who gives us a price break when the 'girls' are boarded together.
Do you have any tips to manage pet sitting costs? Let me know at onthemoney@thomsonreuters.com, opens new tab.
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