Food Inflation Update: Eggs and Beef Prices Remain High Amid Market Shifts
Food inflation remains stubborn as select grocery items, including eggs and beef, drive price increases.
According to Bureau of Labor Statistics data, grocery prices rose 1.1% year over year in October, while overall food costs, including dining out, climbed 2.1%.
Rising wages contributed to the 3.8% increase in restaurant meal prices, surpassing the growth in grocery prices.
Eggs and Beef Lead Inflationary Pressure
Egg prices, historically volatile, surged 30.4% compared to last year. However, they saw a notable 6.4% month-over-month decline in October, marking the steepest drop since April.
A dozen large Grade A eggs averaged $3.37 in October, down from $3.82 in September but up from $2.52 at the start of the year.
Meanwhile, beef and veal prices increased 1.9% year over year but dipped 1.1% month over month, marking the largest drop since June 2022. A pound of 100% ground beef chuck averaged $5.59 in October, consistent with September.
Tyson Foods CEO Donnie King noted challenges in the beef supply chain, highlighting droughts that have impacted cattle availability. “Our focus is working end to end to extract every dollar of value that we can,” King said.
Despite these challenges, he observed robust demand for beef: “The consumer is still eating a lot of beef out there.”
Orange Prices Add to the Squeeze
Orange prices, including tangerines, also contributed to rising food costs. A combination of drought, extreme heat from El Niño, and citrus greening disease has reduced production in Brazil, the world’s largest orange juice exporter.
According to Wells Fargo’s David Branch, orange juice supplies remain tight: “I don’t see [prices] coming down until we have another crop year.”
As inflationary pressures persist, consumers continue to navigate higher grocery costs alongside fluctuating supplies.
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