The price of a flat white has risen above £3 for the first time in Britain’s biggest cafes, as households face mounting pressure on their wallets.
Coffee drinkers face price increases of up to 21% over last year for their daily dose of caffeine, according to the latest figures from UCC Coffee, which showed Costa was the only major chain cafe where customers could get a flat white for less than £3. in July.
Other drinks, including americanos and cappuccinos, had risen by 50 pence per cup between August 2021 and July this year.
Telegraph analysis suggested prices had jumped further in recent weeks, with Pret a Manger stores selling a number of its coffees on Friday for 20p more than July figures, while a series of Costa Coffee options were 40 pence more expensive, including flat whites. costs £3.30.
Paul Rooke, executive director of the British Coffee Association, said the increases were likely to be driven in part by higher labor and energy costs for many large retail chains. Starbucks is reportedly considering selling its UK business amid rising costs, although the company said it was not in a formal sale process.
Meanwhile, the price of coffee beans is rising sharply. Mr Rooke said: “Prices of green coffee, unprocessed beans, have been rising for most of the past two years, due to the return of demand after the shutdowns and also weather-related issues, particularly in Brazil last year, where some areas were damaged by frost.”
Brazil is the world’s largest coffee exporter, producing around a third of the world’s beans, mostly Arabica coffee, which means any problems in the country have a significant impact on prices. Over the past two years, Arabica futures prices have risen around 80% – a surge that began when Brazil was hit by drought and cold, prompting many farmers to turn to crops such as fertilizer production.