Retail egg costs fell in February — however the value drop could not final lengthy
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Retail egg costs retreated in February, in accordance with federal information issued Tuesday, delivering aid to shoppers who saw prices spike on the grocery retailer in current months.
Common egg costs fell nearly 7% in February relative to January, in accordance with the consumer price index, a key barometer of inflation.
A dozen giant Grade A eggs value $4.21 in February, down 13% from $4.82 in January, which was a file excessive, in accordance with federal data tracked by the Federal Reserve Financial institution of St. Louis. The month-to-month decline was the primary since September.
Why egg costs elevated quickly
That dramatic improve in egg costs, economists say, largely stems from a illness known as extremely pathogenic avian influenza — often called bird flu.
The illness is contagious and deadly in birds. It killed a file quantity, together with egg-laying hens, in 2022.
In previous years, the virus has usually disappeared after the spring. It reappeared within the fall final yr, crimping egg manufacturing whereas heading into peak demand season for eggs across the winter holidays, consultants stated.
Decrease costs now partly replicate a decline in client demand early within the yr, which is a typical seasonal sample, stated Brian Moscogiuri, a world commerce strategist at Eggs Limitless, an egg provider.
There additionally hasn’t been a new confirmed case of avian flu amongst business table-egg farms since December, giving suppliers a while to recuperate.
“Can we anticipate loopy, file pricing once more? No,” Moscogiuri stated.
Egg costs could pop once more round Easter
Nevertheless, costs could rise once more heading into Easter, which is in April, attributable to usually robust demand round that vacation, consultants stated. There’s additionally an opportunity that chook flu may floor once more at egg farms.
Common inflationary pressures are additionally serving to maintain egg costs elevated. These embrace greater corn and soybean costs, which make it extra expensive to feed hens, and prices for labor and transportation, Moscogiuri stated.
Common wholesale egg costs elevated 16% to date in March, in accordance with Angel Rubio, senior analyst at Urner Barry, which tracks the wholesale market.
It usually takes a few month for these costs to trickle via to shoppers, and the worth strikes are sometimes extra muted, Rubio stated.
In the end, retailers similar to grocery shops decide the timing and quantity of the worth improve for shoppers.
