Here’s what’s getting more expensive and why, according to CNN Business writers.
The chickens are in short supply, which leads to higher prices. Part of the blame is for Tyson’s roosters.
The meat processor, which sells poultry along with beef and pork, said the volumes of chicken meat are partly low because the roosters it uses for breeding do not live up to expectations.
“We’re changing a male, which we honestly made a bad decision about,” said Donnie King, Tyson’s chief operating officer and president of the group of birds, during an analyst interview this week.
Food as a whole is also rising: Prices rose 0.4% in April as food and restaurant prices rose. On an annual basis, food prices increased by 2.4%.
Buying panic threatens to intensify the supply shock. Gasoline demand in the United States rose 14 percent on Tuesday from a week earlier, according to the GasBuddy app, which tracks fuel prices and demand.
In 99% of metro areas monitored by the National Brokers Association, prices in the first quarter of 2021 increased over the same period last year, according to a NAR report. Nationwide, the average selling price for existing housing has risen 16 percent since the first quarter of 2020 to $ 319,200, both at record highs since the NAR began tracking data on cities in the 1989 quarter.
Nearly 90% of metro areas saw double-digit percentage price increases last year. In comparison, only 25% of the regions saw similar growth in the first quarter of 2020, when the housing inventory was at a healthier level and better in line with the pace of monthly demand.
As the pandemic crushed the US economy last spring, sawmills halted timber production to prepare for a downturn in housing. The decline never came and now there is not enough wood to feed the hot housing market.
Random timber futures hit a record high of $ 1,615 last week, a staggering sevenfold low-profit gain in early April 2020. That’s a big deal, as timber is the most significant supply homeowners buy. On Wednesday, the price fell to 1533 dollars.
Used cars and trucks
To make matters worse, car dealers’ accounts have only a small fraction of the vehicles they usually have from both new and used vehicles. This sends prices to record levels. For example, the average price of a new car was $ 37,200 in the first quarter, according to JD Power, which is 8.4% more than the same period a year ago.
“This puts used wholesale prices at the highest level ever,” said David Paris of JD Power. “And we see that the retail prices used are accelerating rapidly.”
– Anna Bahney, Matt Egan Chris Isidore, Anneken Tappe and Danielle Wiener-Bronner contributed to this report.