Candy prices jump nearly 8%, but consumers are still willing to splurge this Halloween

Halloween's sweetest tradition is likely to cause a fright for consumers, with candy prices up nearly 8% from a year ago in the latest inflation report.

Candy and chewing gum prices increased by 7.7% last month, according to the Bureau of Labor Statistics' September Consumer Price Index , driven by higher cocoa prices. Overall inflation rose 3.7% in September, an acceleration from 3.4% in August.

Extreme weather in the Ivory Coast and Ghana quadrupled cocoa prices from January 2023 to January 2025. Manufacturers typically contract six months or even a year or two in advance, so Americans are paying higher prices now.

"After last year's record cocoa shortages and price spikes, the cocoa market is finally showing early signs of stabilizing, but not enough to deliver big price breaks for Halloween shoppers," David Branch of Wells Fargo said in a recent note.

Cocoa beans, sugar, and corn syrup represent roughly 65% of the ingredients in chocolate, per Branch. Sugar and sugar substitutes were up 5.5% year over year in the latest print.

Tariffs of 10% and 12.5% that took effect in July on 60 trading partners are adding to manufacturers' costs and are likely being passed along to consumers.

According to the National Retail Federation , shoppers plan to spend $13.5 billion in total this Halloween and $4.1 billion on candy alone.

"Consumers are faced with a lot of pressures. We have rising gas prices, inflation, and other things that are hitting their pocketbooks, but where they're not willing to pull back is on the things that matter to them and their families," NRF vice president of industry and consumer insights Allison Zeller told Yahoo Finance .

She added that shoppers are "spending a little bit more savvily."

Still, higher prices are driving frustration among Americans, with consumer sentiment near a record low . Gas and diesel have each set new record highs, heating oil costs are surging just ahead of winter, and housing costs show no signs of slowing.

To spread their budgets this Halloween, Zeller said many people are shopping for decor earlier and at various places, including online and even home improvement stores, to seek out deals.

At a conference in early September, Hershey ( HSY ) CEO Kirk Tanner said consumers have been "resilient" across income cohorts ahead of the key holiday season.

He said low-income consumers are "adapting" by going to convenience and dollar stores to look for lower-priced, smaller packs, while high-income consumers are buying larger packs in bulk, online, and at clubs, seeking out "more value from a price per ounce."