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Chicken-Egg Problem
Producer price growth in the US came in warm for November, data released Thursday showed.
Blame eggs. No, seriously.
Here's how the math breaks down. Producer prices rose 0.4% last month from October, twice the expected monthly gain. Some 60% of that increase was down to a 0.7% increase on the goods side of the equation. And a quarter of that increase was attributable to a 55% jump in the "chicken egg" gauge.
Suffice to say November's PPI release had a chicken-egg problem. (If nobody else m
“The good news is, prices are falling if you exclude all the items and categories for which prices are rising.”
You should take up speechwriting for our President-elect!
Good thing it’s Christmas time not Easter.
Nobody drinks eggnog anymore, anyhow
When a disease outbreak strikes commercial flocks, they ALL must be culled to prevent the disease from spreading further. Its serious.
Back in the late 70s when I was trading egg futures, the occasional scourge was Exotic Newcastle Disease. More recently it is being augmented by bird flu outbreaks (attn JL).
As far as I know, raising interest rates will do nothing to cure the cause of rising egg prices.
Hopefully no bird flu impact on flu vaccine production that is egg-based, still the dominant method.
Partly off topic. I paid $5 for 4 kiwi at Ralphs in Dana Point, CA. Visited Erie, PA and paid $5 for 15 kiwi, product of Escondido CA, about 100 miles away. Maybe no freight costs, sure. Gouging, the new best business practice. Eggs? Probably legit but betting once supply normalizes prices won’t fall very much. In the long run egg producers will make a nice profit off this bird flu problem – it pays to have poor health safety procedures! Cynical, I know.
Bird flu problem