Bananas Rising Quickly As World Changes

Todd Moses
June 10, 2024

After a spike in March, the U.S. average price of bananas has settled at $0.626 per pound.

Inputs that matter: While the price of bananas may not be global news, it is a significant indication of more considerable geopolitical turmoil.

  • The price of bananas in the U.S. should be around $0.60 per pound, but it has not been that low since March 2021.
  • At the height of the 2008 financial crisis, bananas skyrocketed from $0.521 to $0.630 in months.
  • During the pandemic, we saw a similar spike.

The opportunity: The economic world is changing quickly.

  • Food services accounted for more than 19% of all retail leases last year, rising in recent years to the highest proportion for any category since data firm CoStar Group began tracking the statistics in 2007.
  • The uptick reflects how Americans are spending more time and money at restaurants.

Zoom in: However, this increase corresponds to people having multiple jobs and side gigs such as Uber, Amazon Flex, and even extra shifts.

  • The reason is stubborn inflation coupled with high interest rates.
  • The cost of living is rapidly increasing, and the Fed is expected to make rate cuts in November.

Between the lines: Most of the world is under an election year.

  • India recently had the most significant election in history.
  • The EU elections are wrapping up this week.
  • In November, the U.S. is facing a hotly contested presidential election.

Follow the money: The cost of owning a home in the United States has increased 26 percent since 2020.

  • According to Bankrate, the average annual outlay for owning and maintaining a typical single-family home, not including mortgage payments, totaled $18,118 in March.
  • Maintenance costs were the most significant expenditure for homeowners in 2024.
  • Energy bills accounted for the second highest cost associated with home ownership.

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