Egg prices tumbled for the first time in five months in a long-awaited ease in the cost of the staple food which has been ravaged by the world’s worst-ever outbreak of bird flu.
(Bloomberg) — Egg prices tumbled for the first time in five months in a long-awaited ease in the cost of the staple food which has been ravaged by the world’s worst-ever outbreak of bird flu.
Prices fell 6.7% last month, and declines in oranges and bacon will help to make breakfast slightly less expensive in the US, according to Labor Department data released on Tuesday. Eggs recently soared to a record as avian influenza killed tens of millions of birds.
Still, the CPI index for food increased by 0.4%, compared to a spike of 0.5% in January. That’s as costs for bread, beef, ham and potatoes all rose — contributing to elevated inflation across the American economy. Frozen vegetables are at an all-time high.
Increased costs are also coming as some Congressional Republicans are seeking to reduce participation in the US food-assistance program as part of efforts to cut domestic spending.
First Watch Restaurant Group Inc. is predicting commodity inflation of 4% to 6% this year, a big drop from about 18% last year. Some of that relief for the breakfast-heavy chain is because of eggs. In 2022, egg shortages forced First Watch to turn to the spot market to get enough supply, driving their prices higher.
“Eggs are our main protein. That’s what people come to us for,” Chief Executive Officer Chris Tomasso said in an interview on March 13.
He said the industry is repopulating egg-laying hens and as long as there isn’t another outbreak, flock populations should be back at levels where they can sustain the demand.
–With assistance from Dominic Carey.
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