Question of the Day: What grocery item saw the sharpest price increase in April 2020: Eggs, Fruits and Veggies or Meats?
- What normally is the cause of higher prices on grocery items? Why do you think prices rose so quickly in April?
- How do you think consumers react when prices of certain grocery items go up? Do they stop buying them, buy less or still buy the same amount or more?
- Do you anticipate these prices to continue to increase in the month ahead? Why or why not?
Behind the numbers (US Dept. of Agriculture):
The increase in meat prices was mostly the result of declining meat supply following the closures of some meatpacking plants. USDA’s National Agricultural Statistics Service estimates that beef production in April was 20 percent lower than in April 2019, while pork production fell 10 percent below a year earlier. Production of turkey was also down 9 percent, while chicken meat production was about unchanged from a year earlier. With shrinking supplies and subsequent price increases of most meats, consumers turned to different cuts as well as alternative proteins such as eggs, which is a cheaper source of protein. Demand for table eggs rose sharply and so did prices.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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