Amna: Prices have risen for lots of foods, but the cost of eggs climbed the most in the last year. And consumers and businesses have scrambled to keep up. What's behind so-called eggflation? Economics correspondent Paul.
Solman takes a look. Paul: Breakfast time at in a pickle in waltham, Massachusetts , which means eggs. >> I would say 70% of our menu has eggs in it or revolves around eggs or is egg centric in some way. Omelettes, scrambles, in our.
Pancake and waffle mix, the French toasts. People put eggs on hamburgers so it crosses over the lunch, hard-boiled eggs in salads. A lot of eggs. Paul: Eggs that have put the owner in a pickle. >> Prices have gone up 220% over.
The year. Paul: And that is wholesale prices, ending up in a hike — which he hasn't hiking up prices on his menu. >> We are kind of taking a hit in our margins and we are hoping they will come down. Paul: Why not raise it.
Commencement with the actual cost to you? >> We wouldn't have many customers walk through the door. Paul: Eggs have become precious. >> We have to make our employees aware this is a commodity we need to handle more carefully. Paul: Don't drop the eggs.
Do you tell them not to drop the eggs? >> Yes. Before if we would mess up an egg or 1-wood break, we would have another one. Now we are mourning that big. Paul: Meanwhile at the retail grocery store, big prices soared.
60% in 2022 alone, more than any other food item, prompting memes across the internet. One group lodged a complaint, big producers are price gouging. An economist says consumers really noticed the hike. >> On average consumers are buying roughly 280 eggs a year.
Folks always know the last price they paid for gallon of gas and they know the price they played — they paid for a dozen eggs. Paul: Things are contributor to higher prices. >> Higher feed prices, there have been record highs. Transportation costs, labor.
Shortages and labor wages. Other inputs like our energy to heat barns. All of those inputs have increased over the year and have really made an impact just on production. Paul: But the biggest driver of eggflation is the worst outbreak.
Of avian flu ever. >> We've seen populations upwards of 50 million layers last year. You are talking about 15% of overall production has been impacted by avian influenza this past year. Paul: Why do they have to kill.
Millions of birds? >> The thought process is to try and stamp out the spread because it is so deadly to the birds and could depopulate the entire farm itself, including put up a perimeter around the area. Paul: Bigflation isn't that –eggflation isn't affecting.
Everyone. Here, the hens are fluffing and flying. Chickens are Dan's bread-and-butter. >> They will be laying eggs at about 18 weeks. Paul: But this flock is dwindling.
>> There were 100 chickens about three weeks ago and now there are six or seven. Paul: There has been a chicken run, customers flocking to buy do-it-yourself layers. >> Everyone is sinking I have to get chickens. Paul: How much has your business.
Increased since a prices started skyrocketing? >> 45% at least, I think the chicken prices will be phenomenal. Paul: Turkeys and Turkey eggs also popular, although here they would never sell their stud Edgar, an indoor regular.
Also in demand, chicks. >> A Rhode Island red. Paul: These two-year-old cell — sell for eight dollars apiece. >> Hopefully this weekend we will be almost empty. Paul: Egg prices have peaked — have ebbed since peaking in December but some think they.
Will stay high. >> Consumers will see higher prices at grocery store chains. Paul: Since avian flu remains an existential threat. >> It looks like it will be here for the foreseeable future. Paul: But egg persistent is not necessarily a harbinger of.
Persistent inflation. >> You would need a series of negative shocks like this, more and more avian flu, you would need the price of bird feed to continuously rise otherwise, what this does is shock the cost of living ones and grievously, people with low incomes quite.
Seriously, it is difficult to afford eggs, does not result in cumulative inflation, which is a 5% or 10% increase every year on year. Paul: That doesn't mean a good consumers won't continue to feel the pinch for quite a while. This is packing me.
That hurts. Stop it. As for the folks buying chickens to lay at, if you add your own labor to the initial investment — >> You better have good reasons because from an economic point.
Of view it makes no sense. Paul: Unless in the broader sense, you get value from bonding with animals. I hear you have very large eggs. Trying to do some myself in Massachusetts.
