Based on the recent market statistics, higher egg, gasoline prices boost U.S. wholesale fares. Even though prices have generally increased in the month of May, the Labor Department thinks core inflation levels will maintain below 2 in the summer months.
U.S. states have gone through a rough period lately. The month of May has posed particular problems to retailers and customers, alike as higher egg, gasoline prices have boosted wholesale fares, as well.
Based on the information provided by national authorities, the prices of the eggs have tripled in the last month as a result of the recent bird flu epidemics. Approximately 45 million of birds were killed by the recent avian virus. The sad news is that 35 million of them were egg-laying hens; therefore, farmers have a hard time now supplying the egg demand of the market.
Gasoline prices have also risen in the past month. The smallest level was registered in the month of April when the price of a gallon was set to $2.66. Fares indicate that gas prices are now getting higher as the gallon costs around $2.76, still 88 cents less than it used to one year ago.
The recent surge in eggs and gas prices have in turned caused wholesale fares to take on a crescent path. Initially, market analysts and economists expected these tariffs to decrease as the April statistics indicated a 0.4 percent drop in wholesale prices level.
The month of May was generally characterized by an unexpected surge influenced by the economic problems of other market segments. Compared to the previous spring months, wholesale prices have been 0.5 percent bigger in the month of May than in the previous periods.
Other sectors have been only slightly influenced by the surge in wholesale prices. A look at the graphics of the Labor Department suggests that energy and food tariffs have also grown by 0.1 percent.
In spite of the recent prices spike, analysts remain optimistic. They believe the core inflation will not rise significantly during the months of summer as the conditions are generally favorable for the U.S. economy. Import prices, particularly will remain low due to the stronger purchasing power of the dollar and the weakening of the global economy.
Image Source: Consumer Affairs