U.S. egg prices rise driven by avian flu, ongoing inflation concerns
Date
8/19/2024 9:15:30 AM
(MENAFN) In the United States, egg prices have surged for the third consecutive month as of July, drawing significant attention amid broader inflationary concerns. The Consumer Price Index (CPI) reveals that egg prices increased by 19.1 percent year-on-year in July, a stark contrast to the overall CPI, which saw a modest rise of just 2.9 percent during the same period. This substantial rise in egg prices, which have been a staple in American households, has heightened consumer concerns, particularly as they contend with rising costs across various sectors.
The recent spike in egg prices appears to be closely tied to ongoing issues with avian influenza, which has been affecting poultry supplies. The avian flu outbreak, which had a significant impact in 2022, has seen a resurgence in late 2023, notably affecting states like Colorado and California. Market research analyst Caitlin Hubbell from Purdue University’s Center for Food Demand Analysis and Sustainability suggests that the high prices are likely due to this persistent avian influenza problem, which has constrained supply and led to a sharp 8 percent month-on-month increase in egg prices in April, marking the largest monthly rise since the spring of 2023.
Eggs are considered an "inelastic" good, meaning that their demand remains relatively stable even with price increases. Consumers tend to purchase a consistent amount of eggs regardless of price fluctuations and generally do not stockpile eggs when prices are low. This characteristic amplifies the impact of supply disruptions, such as those caused by avian influenza outbreaks, leading to more pronounced price changes at grocery stores. As a result, the combination of persistent inflation and supply issues has made egg prices a focal point in discussions about food affordability and inflation.
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