Bloomberg is reporting a cup of coffee may be getting much more expensive in the near future, as tighter supplies, combined with the cost of living crisis, and the inflation underpinning it, are all driving prices higher.

The outlet is reporting that wholesale prices hit their highest level in almost 12 years last week. Even the robusta blend, noted for its low cost and and large quantities of production, saw its price soar. Robusta is often used to manufacture instant coffees, espressos, and ground blends which are found in supermarkets, sold as cheaper coffee products for consumers.

Bloomberg noted that in Europe’s largest coffee market, Germany, retail costs have skyrocketed with instant varieties increasing by almost 20% year over year. In the US, the price growth of instant coffees was also slowing at a lesser pace than the roasted version in April.

Meanwhile, due to poor harvests in the world’s largest producers, Vietnam, and Brazil, the supply outlook for robusta looks poor for the foreseeable future. Heavy rains in Indonesia are also threatening to reduce yields and dampen the supply outlook even further.

Regardless, Bloomberg reported that according to the latest data from the International Coffee Organization, presently robusta shipments globally have increased, as more has been exported globally in the first six months of the current season compared to the previous three years. The data showed that between October and March, shipments were up by roughly 4% compared to the same period in 2021-2022. However even with the increased shipments, it was not enough to keep up with the rising demand.

Judith Ganes, head of a consultancy in New York which focuses on commodities such as coffee, said, “There’s been so much of a demand shift away from higher-priced coffee that even the market isn’t being satisfied by higher robusta exports.”