Egg prices have been a source of much angst for consumers in recent months, with the average price of large Grade A eggs jumping to a record high of $4.82 per dozen in January. But relief came in February as retail egg prices retreated, according to federal data issued Tuesday.
Average egg prices fell almost 7% in February relative to January, according to the consumer price index (CPI). A dozen large Grade A eggs cost $4.21 in February, down 13% from the record high of $4.82 in January. This marked the first monthly decline since September.
The decrease in retail prices seems to be in line with a sharp drop in wholesale egg prices, the prices grocery stores and other retailers pay to egg suppliers. Wholesale egg prices cratered in January and February, making it easier for retailers to pass on some of the savings to consumers.
While egg prices have retreated from their record high, they are still up 55% over a year ago, according to CPI data — one of the largest percentage increases of any consumer good or service. Large Grade A eggs cost $1.93 per dozen at the beginning of the year on average.
It remains to be seen how long the current respite in egg prices will last, but for now, the February retreat should provide some relief to consumers’ grocery budgets……..
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Rising Dough
Why are egg prices a good judge of the economy? What other items give an indication of how the economy is performing, and why?
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