With the global economy going through massive shifts every day, Americans across the country are faced with surging prices. Everything from rents and utilities to fuel and groceries seems to be constantly going up in cost.
However, cannabis-based products have been in a constant decline since the beginning of 2022. The biggest decline was seen in marijuana flowers, which went down by 16.7% compared to January 2021.
Edibles and vape products declined by an average of 11.8% and 12.4%, respectively, for the same period. The numbers were extracted from sales records in Washington, California. Nevada, Michigan, Colorado, and Oregon.
Experts explain that this doesn’t mean that the cannabis market will keep this trend or that it isn’t already experiencing shifts. However, the complexity of the market arising from the fact it’s still illegal on the federal level means customers don’t immediately see the changes.
The lack of interstate commerce means that prices depend on the state’s supply and demand. With other economic factors such as taxation, dealers, and unregulated operators, the direct influence of inflation on the cost of the final product can be easily missed.
In combination with labor and supply challenges, the aforementioned economic factors can have an overwhelming effect on the market. Due to this, inflation influence can get lost and become meaningless when it comes to price formation.