AGAWAM, Mass. (WWLP) – While prices for some grocery items are starting to go down, Raymond James Senior Vice President of Investments, Mark Teed, says customers won’t see any relief in stores just yet. He says that is a problem that we see with gas prices as well.
“You see prices drop at the wholesale level but they don’t drop at the retail level. Same with food, it just takes a while to get it into the supply chain. We get into the summer, prices will continue to drop if demand and the growing season turns out like we think,” explains Teed.
A report from the U.S. Bureau of Labor Statistics says that egg prices went down by 11 percent in March. This decrease in egg prices comes after a 7-percent drop in February. So far in April eggs went up by $1.24 for Boston and Manchester areas, but price trends from NielsenIQ show it is still lower than it was before.
“About 57 million chickens had to be destroyed because of the disease in the last year and now they’re starting to reproduce again,” said Mark Teed.
According to the General Manager of Geissler’s Supermarkets, Eric Nilsson, egg prices are coming down from where they were around Easter, which is when egg prices normally spike up, “Usually that’s a normal spike throughout the year with egg prices, but obviously with egg prices being higher it was a little bit more dramatic.”
The Federal Reserve says that increases in groceries have to do with the pressures of rising food and fuel prices. It also has to do with the weather and supply chain disruptions. The General Manager of Geissler’s also says that he has also seen prices increase for chips and soda.
“I deal with those directly and just watching how much they have gone up, it’s almost shocking sometimes just to see the cost difference,” said Nilsson.
Teed says people should continue to be patient and look into growing their own gardens to save some money in the meantime.