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What factors are causing the drop in egg prices?
Wholesale egg prices have decreased from $8.05 per dozen in late February to an average of $4.15 now. This drop is primarily due to reduced demand and fewer outbreaks of avian influenza, which previously led to the culling of millions of hens. As supply constraints ease, prices are expected to stabilize.
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How do supply chain issues affect food prices overall?
Supply chain issues can significantly impact food prices by affecting the availability of products. When supply is disrupted, such as during avian flu outbreaks, prices tend to rise due to scarcity. Conversely, when supply improves, as seen with eggs, prices may drop, but retail prices can lag behind wholesale changes.
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Are there other food items seeing similar price changes?
While the focus has been on egg prices, other food items may also experience price fluctuations due to supply chain changes. For instance, products affected by similar supply constraints, like poultry and dairy, could see price adjustments as the market stabilizes. Monitoring these trends is essential for consumers.
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Why haven't retail egg prices dropped yet?
Despite the significant drop in wholesale prices, retail egg prices remain high due to several factors, including the time it takes for retailers to adjust their pricing and potential demand increases as holidays approach. Consumers may still face elevated costs until the market fully adjusts.
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What is the Justice Department investigating regarding egg prices?
The Justice Department is investigating potential antitrust issues among egg producers, particularly in light of the recent price surges. This scrutiny aims to determine if there has been any price gouging or unfair practices that have contributed to the high costs consumers are facing.