More than half of American consumers say they are concerned about the bird flu outbreak, according to an NPD Group survey. And yes, there's ample reason to fret: The virus has killed nearly 40 million birds, including 32 million hens, or about 10% of the nation's egg producers. Understandably, egg prices have spiked as a consequence. The incredible edible egg isn't the only everyday purchase that is getting more expensive for consumers lately. The price tags on these items are also going up.
The bird flu outbreak has been wreaking havoc in the Midwest, with some 40 million turkeys and chicken exposed to the virus. Roughly 25 million chickens have been lost just in Iowa, the nation's leading egg producer. One result is that wholesale and retail egg prices have soared. The wholesale price of "breaker" eggs purchased in bulk by fast food chains and baking manufacturers has nearly tripled in the past month, while the price of a dozen large eggs rose 58% in one month's time in the Midwest.
If the problem persists, it's expected it won't be long for baking companies and fast food outlets like McDonald's to raise prices on products with eggs as primary ingredients. In other words, your Egg McMuffin could be getting a price hike soon.
It's usually hard to tell when and by how much rental car companies increase prices because there are so many factors involved: Rates are determined by demand, location, how far in advance a traveler books, and so on. But recently Hertz, which also owns brands Dollar and Thrifty, publicly announced that as of mid-June it was raising rates $5 per day and $20 per week on rentals at airport locations, with $3 and $10 hikes, respectively, at off-airport rental lots.
A quick 5% spike in Hertz's stock price indicates that investors liked the move. That could be one reason why Hertz jacked up prices openly rather than stealthily. It also seems like Hertz is trying to push rates northward across the board in the industry, in the same way that all airlines tend to match the fare increases of any competitor. “Rent-a-car companies are normally very discreet about raising prices,” Mike Millman, who covers travel companies for Millman Research, told the New York Post. “What’s so unusual about this is Hertz is publicly declaring it wants to lead the industry up.”
A prolonged dry spell in Canada's prairies has meant big trouble for the crops used to make of one of the region's prime products, canola oil. As Bloomberg News reported, the vegetable oil is necessary for McDonald's, Taco Bell, KFC, and Frito-Lay to make so many of the deep-fried treats we crave while knowing they're probably terrible for our health. Prices have jumped 18% since September, and it's expected the increase will trickle onward to price hikes for potato chips, French fries, KFC chicken, and other deep-fried delicacies.
While the bird flu outbreak has primarily affected chickens, it has impacted turkey populations as well—and turkey prices. Wholesale prices are up 4.5% compared with a year ago, corresponding to 10% price increases for turkey breast meat at supermarket deli counters.
The real fear is that the avian flu virus causes a ripple effect in America's turkey population, potentially translating to shortages and price spikes for Thanksgiving, when the demand for turkey naturally reaches a yearlong high. For now at least, suppliers are maintaining that there will be more than plenty of turkeys available come Thanksgiving. Regardless, we're predicting that there will be reports causing panic among turkey lovers in the months to come, as they seem to appear every autumn.
Just in time for the summer travel season, gas prices are rising. As of Friday, the national average for a gallon of regular was $2.74, representing a rise of roughly 25¢ over the last month. Gas prices have remained particularly pricey on the West Coast, with drivers in Los Angeles seeing $4 per gallon at the pump. With California prices that have stayed stubbornly high compared to the rest of the country, some consumer advocates have accused the oil companies of gouging drivers.
At the same time, it must be noted that gas is significantly less expensive compared with the same time last year, when the national average was $3.65. Cheap gas is one of the big reasons huge crowds—and epic traffic—are expected on the roads over Memorial Day weekend.