US Egg prices tumbled 11%in March،the most in36years،surge due to Avian flu

Egg prices in USA tumbled 11% in March، the second straight monthly decline، the most in 36 years، giving American consumers relief after months of soaring food inflation، and fall the most since 1987 after the prices touched a record high in January this year due to the worst-ever outbreak of Avian flu (influenza) which killed tens of millions of chickens during the past year، according to Labor Department data released during this week.

Egg prices in USA tumbled in March with the decline in prices for some meat، poultry and other food products، as the index for food at home eased in last month for the first time since September 2020.

US Egg prices touched a record high in January

USA Egg prices touched a record high in January as the worst-ever outbreak of avian influenza killed tens of millions of chickens in 2022 but outbreaks of the virus were slowing slightly، according to the US Department of Agriculture that said that egg supplies were moderate to available، a change from just a few months ago when some varieties were scarce thanks to US Core Inflation which eased in March.

Grocery prices declined in USA in March and Egg prices posted the biggest single-month drop since 1987 as U.S. inflation eased in March to its lowest level in nearly two years، but underlying price pressures likely keep the door open for the Federal Reserve to consider another interest-rate increase at its May meeting.

Egg prices has the smallest gain since May 2021

The consumer-price index، a closely watched inflation gauge that measures what consumers pay for goods and services، rose 5% last month from a year earlier as Egg prices fall، down from February’s 6% increase and the smallest gain since May 2021، the Labor Department said.

Consumers saw lower prices last month for groceries including Egg prices، gasoline، medical care and utilities as US inflation eased to lowest level in nearly two years in March but higher prices continued for shelter، airline fares and vehicle insurance، the department said.

Egg prices soared last year، of an Avian-flu

Grocery prices declined in March from the prior month، marking the first one-month drop since September 2020، while Egg prices، which soared last year because of an Avian-flu outbreak whic infected about 10% of the USA’s egg laying hens last year، posted the biggest single-month drop since 1987.

The USA food index fell 0.3 percent in March، the first decline in that index since September 2020 as three of the six major grocery store food group indexes decreased over the month، including Egg prices but the food index in USA rose % 8.4 over the last 12 months.
Grocery prices including Egg prices dropped 0.3% from February to March and the cost of beef fell 0.3%، milk 1% and fresh fruits and vegetables 1.3%.

Egg prices remain 36% more expensive than a year ago

Egg prices، which had soared after an outbreak of avian flu، plunged nearly 11% just in March، though they remain 36% more expensive than a year ago and despite last month’s decline، food costs are still up more than 8% in the past year.

it is that during soaring Egg prices after an outbreak of avian flu، some opportunistic Americans attempted to smuggle cheap eggs from Mexico to earn extra money.

Egg prices have slowed thanks to the resiliency of food supply chains in USA

Wendong Zhang، an economist at Cornell University، sai that grocery prices such as Egg prices have slowed in March to an 8.3% year-over-year increase and the drop in price increases illustrate the resiliency of food supply chains in USA as “Market forces، in general، work،”and the resilient supply responses caused the prices to eventually decline.

The biggest contributor to high Egg prices was Avian flu affecting chickens in different parts of the world، including the USA، Japan، and France، forcing farmers to cull chickens at a large scale، which reduced supply and drove up the Egg prices.

Avian flu and supply chain challenges

Outside of the flu، the same things driving up food prices everywhere—like supply chain challenges—also contributed to the price of eggs، such as higher feed costs due to the Russia-Ukraine conflict as Chicken feed can account for up to 50% of the expenses related to the production of an egg.

Transportation and labor costs also rose، pushing up Egg prices، but transportation costs are now declining، and labor costs show signs of easing، helping to explain lower grocery prices overall.