Cannabis prices fall as inflation explodes – here’s why

Throughout 2022, the United States has seen an annual inflation rate of 9.1% – the highest it’s been since 1981. While a number of industries have been deeply affected by this – from food to gas to energy – the cannabis industry has managed to stay under the radar. For the most part.

While the price of supplies to grow cannabis is on the rise, cannabis market prices have remained stable throughout the last few years. In fact, in some areas, they’ve actually decreased.

Still, the relationship between cannabis and inflation is complex – with different places experiencing varying effects. Throughout this article, American Marijuana is going to take a deeper look at how inflation has impacted the cannabis industry and what you can expect from the future. 

For example, COVID-19 had an impact on the cannabis industry. When lockdowns were initially instituted in March 2020, there was a large increase in cannabis sales and cannabis stocks. This increase remained gradual throughout the following years and has stabilized in many areas. However, some places have also seen a recent decrease in cannabis sales, including Colorado and Oregon. And this decrease is, in many regards, a direct result of inflation.

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