(Radio Iowa) – Some Iowans will be leaving their porch lights off to keep the trick-or-treaters away this season because candy prices are, in a word, scary. Anne Villami, an economics professor at the University of Iowa, says the latest Consumer Price Index report shows candy prices are up 13-percent from last Halloween. “That’s higher than inflation,” Villamil says. “The CPI, the general price index, is high right now, that’s at 8.2%, that’s a 40-year high, so 13% for candy is clearly higher than the typical.” Labor costs are up, as are input costs, things like sugar, milk and flour, and she says “elasticity” is also playing a significant role in candy costs.
“That’s basically what a consumer is willing to pay for something,” Villamil says. “So if you think Halloween comes once a year and is really important to people who go out trick-or-treating, and you don’t want to disappoint your kids or the trick-or-treaters, then you’re going to be willing to pay that price, even when it’s up 13%.” While you might find a few discounted bags of candy corn, she says virtually all major candy manufacturers have mirrored each other in raising prices across the board. She says it will mean some households have difficult decisions to make on treats, which can be — tricky.
“This year, people are expected to spend about $100 on average on candy, costumes, decorations,” Villamil says, “and so given that it comes once a year and many people will say, ‘This is important to the kids,’ we’re just going to go ahead and pay that price.” The sticker shock in the candy aisle is a real fright for some shoppers, as the Bureau of Labor Statistics reports this is the largest annual price increase on record.
Facebook
Twitter
YouTube
RSS