With inflation approach down, we will marvel why egg costs have been up 28.1% through the 12 months previous this August.
In line with the CPI, current meals costs have minimally moved:
Egg
Not almost at their January 2023 spike to $4.82 a dozen, nonetheless, you possibly can see current egg costs have been trending upward to $3.20 in August. Once more the reason being hen flu:
And once more, we will look to provide and demand. With the variety of egg laying birds descending, shrinking provide nudged costs skyward. In Colorado, one egg-laying operation reported having “culled” 6 million birds with plans to kill one other 1.8 million.
Statisticians inform us that year-over-year July egg manufacturing was down 2.6%. As economists, we all know that after we shift our provide curve, worth rises:
In the meantime, in our backyards, extra of us have rented chickens. Whereas the development began throughout Covid, the numbers are hovering. With a $795 bundle from Lease-the-Rooster accessible in New Jersey (and I assume elsewhere), you get two egg-laying hens, the coop, water dishes, the meals, and directions. You additionally wind up with 8-14 eggs every week.
As well as, research point out that we wind up with a paradox. The chickens change into our pets that we’d not eat. However nonetheless, we roast the chickens we purchase from the grocery store.
Our Backside Line: Understanding Inflation
Throughout August 2023, a dozen eggs price us near $2.04. And, solely three years earlier than that, many people bear in mind paying $1.35. Nevertheless, relatively than inflation, one main motive for egg worth spikes has been hen flu.
Completely illustrated by egg costs, we would blame what we name inflation when there may be another excuse. For eggs, it’s a illness that simply spreads amongst rooster populations. With different items, we all know that when Covid distorted provide chains, costs elevated. Solely now have we returned to regular.
My sources and extra: Due to Cary for alerting me to the CNN article on egg costs. From there, we discovered particular poultry numbers right here and right here. Then, I returned to our new connection to our chickens and these yard rooster statistics.
