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Cannabis Price Declines Intensify Inflationary Market

Consumers are paying more for goods, but that isn’t always the case with cannabis.

Prices

Despite the inflation in today’s economy, higher-priced goods do not always equate to higher-priced cannabis. With the Consumer Price Index reaching almost +10% in the past year, consumers may expect a similar price hike on their favorite cannabis products. On the contrary, cannabis companies are experiencing price compression within many cannabis marketplaces. Many elements play into this downward price movement—some due to short-term circumstances such as flower gluts, and others due to longer-term market trends such as greater numbers of dispensaries coming online and competing with each other in close proximity.

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