THE high cost of eggs led Dollar Tree to remove the food from its shelves.
Dollar Tree has stopped selling eggs, the retail and grocery chain confirmed to multiple media outlets this week – pointing to continuing high egg prices.
In recent months, the price of eggs reached record levels. Costs have started to fall for consumers, with 6.7% drop in February, but egg prices are still up 55% over the past year. In February, producers saw a 38% annual increase in the cost of eggs, according to CNN.
Shoppers saw an average cost of $4.21 per carton for Grade A eggs in February, down from $4.82 in January, according to the Bureau of Labor Statistics. In contrast, Grade A eggs cost about $2 a carton in February 2022.
Dollar Tree – which heralds a main price at $1.25 for most of its products, as well as some $3 and $5 items – told CNN that he cannot afford to sell eggs at these prices.
“The cost of eggs is very high right now,” Dollar Tree spokesman Randy Guiler said. Guiler added that Dollar Tree will bring back eggs when “costs are more in line with historical levels.”
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A dollar tree spokesperson told Reuterswho first broke the news, the chain does not plan to bring eggs back to Dollar Tree stores until the fall.
Unlike Dollar Tree, Family Dollar stores, which are also owned by Dollar Tree, Inc., still have eggs and will continue to sell them, Reuters and CNN reported.
Dollar Tree did not immediately return a request for comment Saturday from USA TODAY.
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Why has the price of eggs soared in recent months?
The increase in egg prices observed in recent months is due in particular to the increase in demand, high production costs and the avian flu epidemic.
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Earlier this year, lawmakers and farmer-led advocacy group Farm Action also called for an investigation. on possible price increases by producers – pointing to record profits posted by Cal Maine FoodsAmerica’s largest egg producer.
Headline inflation fell in February
Increase in wholesale priceswhich impacts how much retailers pay when buying products from manufacturers, has slowed significantly in the past month.
From January to February, the government producer price index fell 0.1%, compared to a 0.3% increase from December to January. Compared to a year ago, wholesale prices rose 4.6%, down sharply from January’s 5.7% annual increase.
A key driver of the slowdown in wholesale price inflation in February was the sharp drop in wholesale egg prices, which fell 36.1% in February.
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Meanwhile, consumer prices rose 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, according to the price index at Department of Labor consumption. Overall, food prices continue to rise, but at a slower pace, rising 0.3% from January and 10.2% over the past year.
Contributor: Paul Davidson, USA TODAY; The Associated Press.