A Supply-Side Story: The Rising Price of Candy

The price of candy has risen considerably, and when a price goes up, there are always two school of thought. One argument is that greed and “big candy” has jacked up the price in pursuit of higher profits. The challenge for this explanation is to explain why big greedy companied had not already raised prices last year, or the year before. It seems implausible that their level of greed suddenly increased, and if or when candy prices fall again, will it mean that they deserve praise for diminishing their greed? The alternative explanation is rooted in factors affecting candy supply. Natalie Ho provides details in “Why is candy so expensive these days?” (Monthly Labor Review: US Bureau of Labor Statistics, September 9. 2026). Here’s the basic pattern: the orange line shows the overall inflation rate as calculated by the Consumer Price Index; the blu line show the inflation rate for the “candy and chewing gum” subcategory. Ho offers some basic facts. For example, about two-thirds of total…