Egg prices in the US continued to remain high. The CPI report showed that egg prices increased by 59.9% year-on-year and 11.1% month-on-month in December last year.
[Financial Channel/Comprehensive Report] The United States announced on Thursday (12th) the Consumer Price Index (CPI) for December last year, and the price of eggs was particularly eye-catching in the report. 59.9%, a monthly increase of 11.1%, the largest annual increase since September 1973, and the largest monthly increase since April 2020.
U.S. Bureau of Labor Statistics (BLS) economist Reed (Steve Reed) said that eggs alone drove up the cost of grocery categories in December last year. More than 90% of the increase in costs in the grocery category was due to higher costs for eggs.
As of December, a dozen Grade A eggs cost $4.25, Reid said.
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Why are U.S. egg prices soaring?
Some analysts bluntly said it was the impact of bird flu. Kevin Bergquist, an analyst at the Wells Fargo Institute of Agriculture and Food Research, pointed out that about 40 million laying hens will die due to bird flu infection in 2022, which will make laying hens in the United States more likely to die. The total was about 10% less, which also reduced total egg production by about 5%.
Scholars point out that the rising cost of feed has also driven up egg prices. David Anderson, a professor at the Department of Agricultural Economics at Texas A&M University, said that the cost of feed has been very expensive in recent years. The scale of production will be reduced, so egg production has been declining before bird flu.
Anderson also pointed out that consumers will want to buy eggs anyway, "There is really no substitute for eggs in Muffler's or my omelet eggs. You basically have to have eggs." In addition, holiday baking It also led to an increase in demand for eggs.
Due to supply problems, some retailers have restricted consumers from buying eggs. Yahoo Finance found on November 29 last year that BJ's Wholesale Club limited each customer to purchase 2 boxes of eggs, and one in Brooklyn Whole Foods has similar restrictions.
However, target department stores, Wal-Mart and other businesses did not offer purchase restrictions.
Anderson believes that egg prices usually peak in spring, especially during Easter, so egg prices may continue to remain high in the next few months. However, he also predicts that egg production is expected to gradually recover within the year. Then the price will drop.
Belqvist is also optimistic about the drop in egg prices. He said that it is expected that egg prices may soar again between now and Easter. If the impact of bird flu gradually recedes, egg prices will slowly reset in the next six months.
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