Despite rising inflation, the cost of cannabis products has declined over the past year, according to data from cannabis analytics firm Headset outlined by CNN. Flower prices fell 16.7% per gram, edible prices dropped 11.8% per milligram of THC, and the price of vape products fell 12.4% per milligram, according to the Headset analysis, which tracked sales in California, Colorado, Michigan, Nevada, Oregon, and Washington State.
Andrew Livingston, director of economics and research at Vicente Sederberg LLP, told CNN that because cannabis is federally outlawed, individual states create their own rules and regulations for the market and, therefore, prices are more heavily dependent on in-state demand. Rather than attributing the drop to “no inflation,” he said, “there are other factors at work that would overwhelm the inflationary signals.”
Theresa Ekman, supply chain coordinator for Native Roots, said that the company is “ordering smarter,” noting that the company has had to increase its wages by 14% during the coronavirus pandemic.
“There’s been so many other unfortunate, negative influences with regards to this pandemic that we really did not want to be one of those. We wanted to be able to continue to… maintain the same prices to keep our customers happy.” — Ekman to CNN
Kika Keith, the owner of Gorilla RX, said that she does not plan to increase prices at her Los Angeles retail dispensary because of “how inflation affects the disproportionately impacted communities and the disenfranchised.”
Gorilla and other operators did launch a box with a variety of products from Black-owned brands, called the Black Box Project, for a discounted price. Keith said the project looked toward “cooperative economics” which she described as “the beauty that’s coming up — the rose that’s coming from the concrete.”
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Cannabis Product Prices Drop Amid Rising Inflation