Despite inflation, cannabis prices are falling

The cost of gas, groceries, and a night out on the town could go up, but recent data shows cannabis prices are actually falling or stabilizing.

The data, compiled by Headset and outlined by CNN, tracked cannabis sales in legal states like California, Colorado, Michigan, Oregon and others. It showed that from January 2021 to January 2022, the prices of marijuana flower, vapes, and edibles declined by 16.7%, 11.8%, and 12.4%, respectively.

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Photo by Nicole Plunkett via Unsplash

While that drop might suggest the cannabis industry is exempt from inflation and the impact of the pandemic, experts say it isn’t. “Inflation is evident when all else is equal,” said Andrew Livingston of national cannabis law firm Vicente Sederberg.

Because the cannabis industry is an emerging business, it’s not as established as others that have been around for decades, with the effects of inflation being easier to disguise when talking about prices. The cannabis industry is directly influenced by local demand and state-level supply, which drives prices and whether or not people buy products.

A multitude of cannabis workers and business owners said the pandemic has forced them to be smart about the products they order and to spot the trends of their buyers. They also didn’t have the luxury of raising prices just because cannabis products were now harder to order.

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“Even as a stock business owner who has struggled to have my business in my community in South Central Los Angeles where you see how inflation is affecting the disproportionately affected communities and the disenfranchised, I can’t even do it for my clients “Inflation and the supply chain are causing me to have higher prices, so work with me,” said Kika Keith, owner of Gorilla Rx Wellness Co., LA’s first black, women-owned pharmacy

Another factor that could affect the convergence of cannabis prices is the fact that the industry is gaining traction and more dispensaries are available, with supply and demand finally reaching similar levels.