Egg Prices Have a Great Fall

Inflation moderates in May

The CPI rose 4 percent for the past 12 months, according to the BLS. Although that increase in the rate of inflation is less than half of its 9.1 percent near-term peak recorded in June 2022, it is still higher than economists at the Federal Reserve Bank would like.

Not all prices rise or fall at the same rate. The five biggest increases were mainly in services, in large part because the low unemployment rate is making companies pay up for labor. The cost of food at home rose 5.8 percent the past 12 months, while the cost of dining out rose 8.3 percent.

The five biggest price gainers the past 12 months:

• Motor vehicle repair, up 19.7 percent. As the price of new cars rises, more people are buying used cars, which often require more repair. Many of the features that make cars more fuel-efficient also make them more expensive to repair. 
• Bread, up 12.5 percent. As with many processed foods, the price of bread includes the price of labor — and wages have been rising.
• Fats and oils, up 11.8 percent. Most foods that rely on oils, such as margarine (up 22.5 percent), salad dressing (up 14.3 percent) and condiments (up 9.5 percent) have seen steep price increases. One reason: The Russian invasion of Ukraine, one of the world’s largest producers of sunflower and soybeans.
• Veterinary services, up 11 percent. Many people adopted pets during the COVID-19 pandemic, and pets require health care. Vets need to hire assistants, buy new equipment and pay rent. Furthermore, becoming a veterinarian is an expensive and difficult process, and there is a limited supply of qualified vets.
• Shelter, up 8 percent. Rising home prices mean that more people are renting — and that means rents are rising, too. Zillow, a real estate pricing website, says the average rent in the nation is $2,048, up from $1,955 a year earlier, a 5 percent gain. The BLS puts the increase for all types of shelter, including new homes, at 8 percent. 

The five biggest price declines (aside from eggs) the past 12 months:

• Airline fares, down 13.4 percent. Jet fuel prices have fallen, taking some airline fares down with them.
• Energy, down 11.7 percent. This category includes gasoline, down 19.7 percent, and fuel oil, down 28.6 percent.
• Televisions, down 11.5 percent. New televisions are not only lighter but cheaper, and they have more features.
• Bacon, down 9.8 percent. The price of meat has been relatively stable the past 12 months, rising just 0.4 percent, according to the BLS. But pork products in general have tumbled 2.9 percent, with bacon leading the way down.
• Used cars and trucks, down 4.2 percent. For a brief period in 2021, some used cars were selling at the same price as new ones because parts needed to make new cars were tangled up in supply chain problems.  No longer. New cars are rolling off assembly lines, giving consumers more choice in what kind of cars to buy.

The CPI measures a market basket of consumer goods reflecting what an average consumer would purchase. BLS data collectors visit (in person or on the web) or call thousands of retail stores, service establishments, rental units and doctors’ offices all over the United States to obtain information on the prices of the thousands of items used to track and measure price changes in the CPI.