Here’s how an increase in coffee prices is affecting drinkers and roasters in Ottawa

Your morning java is costing more as the price of coffee jumps 30 per cent over a year. CTV’s Peter Szperling explores the reason for the jump in coffee prices.

Drip by drip, the price of coffee is contributing to the annual inflation rate for groceries and is having an impact on coffee drinkers and businesses.

The latest Statistics Canada inflation numbers show the price of coffee went up 30 per cent year-over-year.

“It’s crazy,” says coffee drinker Ryan Skala. “Trying to keep enjoying the caffeine kick but save a dollar where possible.”

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Local roasters and coffee shops are seeing an increase in what they pay for coffee, too.

“Our price increase was between 40 and 45 per cent, rather than 30 per cent,” says Henry Assad, owner of Happy Goat Coffee Company.

“A higher quality coffee, you know, attracts definitely higher prices,” he tells CTV News Ottawa.

Assad says he’s absorbed most of the cost increases, only raising prices by about five per cent.

“We need to keep our customers happy,” he says.

Economist Colin Mang says several factors are to blame for the rise.

“Weather variability and lower yields means that there are less coffee beans being produced and there is more global demand,” said Mang. “That is driving up the prices.”

Grocery expert Sylvain Charlebois, the director of the Dalhousie University Agri-Food Analytics Lab, says the biggest price hike is at the grocery store.

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“With retail, about 50 to 60 per cent of the actual price you pay at the grocery store is for the coffee itself in the bag,” he explains. “If you see a sale, grab a few bags.”

Food service, Charlebois said, tends to be less affected by higher prices than retail, but not they’re immune.

“I would say that some chains are probably selling coffee at a loss. A dollar a cup is a loss leader for sure.”

It’s something many coffee drinkers have also noticed.

“I just buy whatever’s on sale,” says Josette Tofflemire.

With files from CTV’s Genevieve Beauchemin