Falling Wholesale Prices Could Mean Cheaper Eggs Soon

Grocery shopkeepers may soon get some relief on egg prices.

Part of the stunning decline in the wholesale-centered manufacturer price index (PPI), the wholesale chicken egg prices fell 36.2% year-on-year in March. Following the outbreak of bird flu helped to increase egg prices after the fall, causing the ongoing burden for consumers.

While not directly related, wholesale pricing trends can feed in consumer pricing levels, it shows that some relief for egg prices may occur in the way.

The cost of low gasoline helps reduce bulk prices

Overall, wholesale prices fell 0.4% compared to the first month in March, which have been surveyed by economists below. The Wall Street Journal And Dow Jones Nuswire ‘ Estimates 0.2% monthly increase in PPI. Compared to a year ago, wholesale prices, as measured by PPI, were 2.7%above, was also decreasing from the level of February.

The Bureau of Labor Statistics stated that the prices of eggs fell significantly, in the march PPI report, the trend downwards was mainly associated with a decline of 11.1% in gasoline prices, which was responsible for about two-thirds of the march fall in goods prices.

The report follows Thursday’s Consumer Price Index (CPI) data, showing that consumers also faced light inflation in March. Although this is positive news for consumers, economists have warned that it can be short -lived, as President Donald Trump’s tariff policies are expected to push more prices in the coming months.

Steel mill prices rise after trump tariff on metals

There were some indications that the tariff effects were already seen at the wholesale level. After Trump applied 25% tariffs on aluminum and steel imports, PPI showed in March that prices for steel mill products jumped more than 7%.

Economist Oren Klachakin, an economist at nationwide financial markets, said, “Tariffs had some effect on the march PPI below the surface and we expect to see more pester in the next months.”