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by thewebguyd
38 days ago
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For the eggs I buy, they are currently $7.99/dozen. Cheapest in my store is $5.99/dozen. That doesn't disprove my point though. Prices are still higher as a baseline than before the supply side shock. Prices raise to a "new normal" and consumers adapt, removing pressure to lower back down to pre-shock levels. wholesale egg prices have actually plummeted, yet retail prices have only drifted slowly downward incrementally, and have not reached the previous baseline. Its asymmetric price transmission, and its a documented economic phenomenon. "Prices go up like rockets, and fall like feathers" |
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Looking at the chart, it seems to be the case that every sharp increase in price has been followed by a sharp decrease in price.
Just for fun, here's the same chart adjusted for inflation: https://fred.stlouisfed.org/graph/?g=1WXWZ