bloomberg Eggs were a big part of the PPI, they point out, accounting for 80% of the year-on-year rise. bird flu). I was curious about what part of the food eaten at CPI’s house was eggs.
Since there was no CPI subcomponent for eggs, we decomposed the cumulative increase in CPI food for households since January by taking the non-seasonally adjusted BLS price of 12 large Grade A eggs seasonally adjusted using a moving (geometric) average. . 2024.
Figure 1: CPI-home food (sa), egg contribution (brown bars), home food contribution (blue bars), calculated using log difference. Source: BLS and author’s calculations via FRED.
This means that without eggs, food available at home (aka “groceries”) would have nearly plateaued in 2024.
calculate:
- Egg share in CPI in 2023: 0.178%
- 2023 CPI-food eaten at home CPI share: 8.072%
- Egg weight in household CPI food in 2023: 2.205%
For comparison, PPI weight in eggs (final demand): 0.07%
Below are the consumer prices for a dozen eggs and the final demand (PPI) for a large egg.
Figure 2: 12 Large Eggs (blue, logarithmic scale on the left) and PPI (Period Demand) Large Eggs (tan, logarithmic scale on the right), both normalized to 1980M01=1. NBER defines recession dates as gray, from peak to trough. Source: FRED, BLS, NBER, and BLS via author’s calculations.
