Retail egg costs fell in February — however the value drop might not final lengthy
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Retail egg costs retreated in February, in response to federal information issued Tuesday, delivering aid to customers who noticed costs spike on the grocery retailer in latest months.
Average egg costs fell nearly 7% in February relative to January, in response to 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 report excessive, in response to federal data tracked by the Federal Reserve Bank of St. Louis. The month-to-month decline was the primary since September.
Why egg costs elevated quickly
That dramatic enhance in egg costs, economists say, largely stems from a illness known as extremely pathogenic avian influenza — referred to as bird flu.
The disease is contagious and lethal in birds. It killed a record number, including egg-laying hens, in 2022.
In past years, the virus has typically disappeared after the spring. It reappeared in the fall last year, crimping egg production while heading into peak demand season for eggs around the winter holidays, experts said.
Lower prices now partly reflect a decline in consumer demand early in the year, which is a typical seasonal pattern, said Brian Moscogiuri, a global trade strategist at Eggs Unlimited, an egg supplier.
There also hasn’t been a new confirmed case of avian flu amongst business table-egg farms since December, giving suppliers a while to get better.
“Do we expect crazy, record pricing again? No,” Moscogiuri mentioned.
Egg costs might pop once more round Easter
However, costs might rise once more heading into Easter, which is in April, on account of usually sturdy demand round that vacation, consultants mentioned. There’s additionally an opportunity that chicken flu may floor once more at egg farms.
General inflationary pressures are additionally serving to maintain egg costs elevated. Those embody larger corn and soybean costs, which make it extra expensive to feed hens, and prices for labor and transportation, Moscogiuri mentioned.
Average wholesale egg costs elevated 16% up to now in March, in response to Angel Rubio, senior analyst at Urner Barry, which tracks the wholesale market.
It usually takes a couple of month for these costs to trickle by way of to customers, and the worth strikes are sometimes extra muted, Rubio mentioned.
Ultimately, retailers comparable to grocery shops decide the timing and quantity of the worth enhance for customers.
