US consumers are facing rising costs for everyday essentials like eggs, as a nationwide monthly spike of 8.2% pushes prices up. The surge in egg prices is attributed to the ongoing avian flu outbreak and supply chain disruptions.
According to data from the Bureau of Labor Statistics, the annual rate of grocery price inflation stands at its highest since last year, averaging 1.6% growth from the previous year. Despite this, overall inflation accelerated to 2.7% last month.
The rise in egg prices is particularly significant, with a 15-dozen case now costing up to $75 – nearly four times the original price six months ago. Restaurant owner Roger Vidlak said he’s been forced to absorb the costs, citing his family-owned business as one of his customers’ most loyal supporters. “I haven’t raised my prices for probably six months,” he added.
Industry experts and economists warn that food manufacturers have expanded their footprint across the country, leading to increased transportation costs due to driver shortages. Furthermore, other pledges from President-elect Trump, including 25% tariffs against Mexico and Canada as well as mass deportations, could drive up food prices further and reaccelerate overall inflation.
As consumers continue to adapt to rising food prices, Vidlak emphasized that his business will prioritize its loyal customers over profit margins. “You want to make money, of course, but you don’t have to make it all in one day.” The challenge ahead for consumers is that it’s unlikely to see food prices fall significantly and revert to 2019 levels, with stabilization being the best hope.
Source: https://edition.cnn.com/2024/12/15/economy/food-prices-increase-why/index.html