13.02.25 - ‘Eggflation’

In the US, egg prices reached an all-time high, up 15.2% month over month in January, the highest jump in nearly a decade. The prices almost doubled in one year, particularly affected by a spike in bird flu infections, which has led to egg shortages. Prices continue to soar, in case shoppers can even find them in grocery stores. Retailers started to limit egg purchases per customer.

Markets: -

My View: According to the data, food prices are not the primary driver of the current persistently high inflation anymore. However, eggs are a widely consumed product, and their rising prices are noticeable to consumers. In addition, media coverage has amplified public awareness, reinforcing the perception of high inflation. As a result, this psychological effect can negatively influence overall consumer sentiment, potentially impacting spending behavior and economic confidence.

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