Eggflacja - a new ingredient in your favorite pastries?

This year, a new ingredient joined the composition of the donut - eggflation. This term is used to describe a strong increase in egg prices on world markets. In Poland, their prices have increased by about 50% over the last year. with annual inflation of 17,2 percent. And this is not the end of the increase - soon we will not buy eggs for less than PLN 10 for 10 eggs.

What is eggflation

In recent months, eggs have become a symbol of the increase in food prices. The increase in prices is so high that a new term has appeared - eggflation, meaning inflation of egg prices. Eggflation is something we've been discussing and joking about lately. This is a standard mechanism that allows you to somehow get used to the situation when the price of a good increases dramatically and puts a heavy burden on our wallets.

Eggs are expensive for several reasons. On the one hand, flocks of chickens are being decimated by bird flu. Laying hens are more affected by the disease than chickens raised for meat, which tend to live too short to become ill. This reduces the supply of eggs in the world. On the other hand, the cost of heating chicken farms, which is an important element of the cost of each egg, has increased sharply. When we add to this the increase in feed and fuel prices, we get the perfect recipe for a strong price jump.

On store shelves in Poland, the price of a package of 10 eggs is about PLN 9 (with a bit of luck, you can buy eggs at a discount for PLN 7,99). A year ago it was PLN 6. This means a price increase of 50%. However, the increases in wholesale egg prices are even greater and reach up to 70 percent. And this means that this is not the end of price increases and soon the price in stores will permanently exceed PLN 10.

However, this is nothing compared to the increase in prices that took place in the US. Within a year, the price of 12 Grade A eggs went from less than $2 to $4,80. Most of this increase is in the last months - from December to January. The average American, visiting the supermarket every few days, could (and still can) observe this festival of price increases on an ongoing basis. And this resulted in the appearance of a lot of jokes and memes about it, as well as the birth of the term eggflation.

One pulls the other

Soaring egg prices They also affect donut priceswhich are also growing rapidly. Does that mean, however, that we should completely lose ourselves in their food before they go up again? Definitely not - we recommend moderation, which will be beneficial for our wallets and health. It is also worth remembering that on the market of agricultural goods it often happens that an increase in prices causes an increase in production, which in the long run results in a decrease in prices. So in the long run, after the reasons for the current price increases have faded, the eggs may go down again. Or at least they'll stop being expensive.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.