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Inflation pushes candy prices to new heights ahead of Halloween

Yahoo Finance Live co-hosts Seana Smith and Dave Briggs take a look at how rising candy prices may impact trick-or-treaters' Halloween candy haul.

Video Transcript

DAVE BRIGGS: Inflation has already hit your grocery list and, certainly, your gas tank. And with Halloween less than a week out, candy prices are now equally frightening. According to data company Clover, many of your favorite Halloween classics are up, well, more than 10% this year. Reese's Peanut Butter Cups, the GOAT, were up 14% this year. A Hershey's bar is up 15%. Bag of Skittles up 10%. Kinder Chocolate Eggs are up 16% and Twizzlers up 9%.

Shrinkflation also part of the equation as well, with manufacturers downsizing products, as ingredients, labor, and transportation costs have skyrocketed. In this case, look, they could probably-- they have a lot of pricing power here. Those are inflation, recession-proof. We're going to pay whatever they do.

SEANA SMITH: Yeah, exactly. I don't think people have a lot of choice, especially if you want trick or treaters for Halloween. If it's not just for yourself, if you're looking to give it out, you have to pay, or you're more inclined to pay, I think, those higher prices. I mean, take a look at the overall spending that we're expected to see on candy this Halloween. It's expected to reach an all-time high at $3.1 billion.

We've talked about in the past, a record $10.6 billion could potentially be spent on Halloween this year. Dave, you mentioned peanut butter cups as the GOAT, Greatest Of All Time. I do agree with you on that. Number two--

DAVE BRIGGS: Glad we can agree on that.

SEANA SMITH: --across the US, the second favorite-- and you agree, and we also agree with the rest of America-- it came in at number one. Second top favorite, Skittles, M&M's at three. Hot Tamales, though, number five-- kind of took me a little bit by surprise. But when you take a look--

DAVE BRIGGS: Very surprised.

SEANA SMITH: --at these types of prices here, more and more expensive, maybe people aren't going to be curtailing their spending as we head into Halloween. Post-Halloween, though, we could potentially see a big drop in candy sales.

DAVE BRIGGS: The real test is, what do you hand out? Do you go full size? Because I know Halloween--

SEANA SMITH: No, I'm too cheap for that.

DAVE BRIGGS: --big in your hood.

SEANA SMITH: It is really big in my hood.

DAVE BRIGGS: You guys decorate to the nines.

SEANA SMITH: You know-- yeah. My husband will probably want to give out the full size candy bars, knowing him. I'm probably going to have to rein it in just a little bit, especially with these prices. It's not the most financially sound advice, you know?

DAVE BRIGGS: Yeah, see, we're always out trick or treating. We'll leave out the bucket. The first two kids show up, they empty it into their bag, and--

SEANA SMITH: Then it's all downhill from then.