‘Pumpkin spice tax’ caused the price of fall-flavored products to rise by up to 161% this year
The price of pumpkin spice products is higher than ever this season
Pumpkin spice is one of the hallmarks of fall, and retailers know it. This year, the prices of pumpkin spice products are skyrocketing. Retailers often mark up the price of pumpkin spice products with a “pumpkin spice tax.” This year, that tax is costing consumers up to 161% more for products with the signature fall flavor.
Shoppers are already paying a pretty penny for groceries this year — inflation rates hit an all-time high this year. Between July 2021 and July 2022, the cost of eggs rose by 38%, according to CPI data. Most of the blame for increasing inflation rates is being placed on the supply chain snarls during the pandemic and the war in Ukraine.
It is common practice for retailers to bump up prices on seasonal-flavored products, but this year, shoppers are paying more than ever just to get a taste of fall’s favorite flavor.
Magnify Money, a finance site, has studied the pumpkin spice tax since 2007. This year, consumers are paying an average of 14.1% more on pumpkin spice products than they do for a traditional flavor. That’s 60.2% higher than consumers paid for the same products in October 2020.
While there are some products that have been in short supply, such as sugar and eggs, pumpkin spice is not one of them.
“(Retailers) can offset certain costs by raising prices on things they know people are clamoring for for a short period of time,” Ismat Mangla, executive editor for Magnify Money, told CBS News. “Pumpkin spice is not difficult to procure, but it’s a way for restaurants and stores to capitalize and make a little bit more money on what is in demand.”
Since the 2003 release of the famous Pumpkin Spice Latte from Starbucks, the flavor has seized the hearts of fall-lovers. The flavor has taken over the season and can be found in pretzels, yogurt and even beer.
Magnify Money found which of these pumpkin spice-flavored products rose the most in price this year. Here’s what the site reported:
- Trader Joe’s pumpkin spiced teeny tiny pretzels: 161%.
- 365 by Whole Foods Market spiced pumpkin pancake and waffle mix: 129.8%.
- Trader Joe’s pumpkin spice hummus: 49.9%.
- Trader Joe’s pumpkin bisque: 46.3%.
- Trader Joe’s pumpkin cheesecake croissants: 29.7%.