An eggstraordinary price rise
Monthly Food Inflation Update - January 2025
At the end of 2024 eggs were the standout inflationary item. Unfortunately on the monthly updates the CPI indicators don’t report specifically on eggs, but they are a hot news item presently with supply an issue across the country and bird flu impacting the ability to make up the shortfall. Consumers are noticing the lack of eggs and the steep rise in price seen over the last few years.
Indeed, since before Covid the average price of the basic cage eggs (per 12 pack) has increased from around $4.50 to nearly $6.00, an increase of about 30%. Just last year eggs prices rose by almost 9%. The jump in egg prices was a huge talking point in the US elections and helped bring Trump to power as he ranted about bringing down the cost of living for the average American consumer. Will eggs be a huge issue for the local elections?
A look at the monthly CPI data for January 2025 shows that it is the Fruit & Vegetable category that is quick off the block to push the inflationary barrow with a 3.3% lift in prices noted over the month. Most other categories were more moderate (circa 0.6-0.8% gains) and Dairy was down by 0.1%.
However, the annual averages, comparing the 2024 average to 2025, thus far, shows that prices are higher for all monthly reported categories at the beginning of this year. Breads & Cereals top the list with a 2.7% annual gain, with Meat & Seafood not far behind on 2.4%. Dairy the least inflationary at just a 0.3% price increase annually. It is probably important to note that while all categories show price increases they are all still under the 3% ceiling that the Reserve Bank considers when deciding to increase interest rates.
