The recent rise in inflation has been causing concern among economists and consumers alike. Some of us might be able to see the impacts of inflation at the grocery store, where our dollar buys us less over time, but what about in the cannabis space?
If inflation was heavily impacting the cannabis industry, we would expect that the prices of individual products would increase over time. We do not see that happening.
Short term, costs to build new facilities and equipment may rise as producers pass on higher commodity input costs, and higher energy costs could drive up indoor cultivation costs.
But if we enter a long-term inflationary cycle, cannabis is well positioned because the continued federal illegality of cannabis has led to excessive costs that provide cost-cutting opportunities regardless of inflation
While inflation has not been negatively impacting consumers in the cannabis industry, things may change. And since the cannabis industry has the tendency to move quickly, we will continue to monitor the space and keep track of pricing and inflation.
How does inflation impact the cannabis industry?
Why the cannabis industry can beat inflation
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
Episode 769 of The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis business news, interviews, investments, events, products, reviews, and some random stuff. But as Jay-Z said “it’s only entertainment.”
Song: Beat | Keep On | 2020
Artist: Milochromatic Beats
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018
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