Shoppers across the U.S. are looking ahead to a new year.
Retailers and other corporations, management and customers all are eagerly awaiting opportunities in 2025. A new presidency promises political and economic change — for better or worse. The happiness of many consumer wallets depends on what's to come in the months ahead.
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But some of the less favorable parts of 2024 seem to have stayed with us.
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The most recent PCE price index, reported in December, indicated that prices at an annual rate continued to rise as expected over the prior month. Some analysts said this still meant that the Federal Reserve, which closely tracks that benchmark as it develops interest rate policy, might well pause on its path of conservative but steady rate cuts.
The regular monthly Consumer Price Index rose 0.3% overall in November. Here's a look at key price movements across some of our most crucial products and services:
- Food at home: increase 0.4%
- Food away from home: increase 0.5%
- Energy: increase 0.2%
- New cars: increase 0.6%
- Used cars: increase 2.0%
- Apparel: increase 0.2%
- Medical care services: increase 0.4%
- Shelter: increase 0.3%
"Over the last 12 months, the all items index increased 2.7% before seasonal adjustment," the U.S. Bureau of Labor Statistics wrote.
Walmart
Key grocery item soars in cost
Many of us feel a particular pinch to our budgets when we make a routine trip to the grocery store.
"Four of the six major grocery store food group indexes increased in November," the U.S. Bureau of Labor Statistics found.
"The index for meats, poultry, fish, and eggs rose 1.7% over the month, as the index for beef increased 3.1% and the index for eggs rose 8.2%. The nonalcoholic beverages index increased 1.5% in November, after rising 0.4% in October."
One item in particular has folks feeling skittish.
The price of eggs has increased significantly over the past few months, particularly on the back of the recent outbreak of bird flu, which makes eggs pricier and harder to come by. In November it was estimated that egg production dropped 4% while wholesale egg prices increased 55% in that month.
The H5N1 virus is deadly to many egg-producing hens, which in turn reduces total egg output. When production goes down, pricing goes up.
The effect was compounded in recent weeks as many folks stocked up on eggs for holiday baking and hosting friends and family during their time off.
Walmart sees major price increase
One such state has been hit particularly hard by the egg-market mess.
In California, the U.S. Department of Agriculture raised its price target for large shell eggs to $8.97 for 12. That's an increase of 78 cents, or 9.5%, from its previous pricing benchmark.
A Walmart (WMT) location in Chico, Calif., a 90-minute drive north of the capital, Sacramento, was seen selling a carton of 18 Great Value (Walmart's in-house brand) eggs for $9.52, or 53 cents apiece. A dozen of the same eggs were retailing for $7.22, or 60 cents each.
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A local Safeway grocery store in Chico was selling a carton of 18 cage-free Lucerne Farms eggs for $12.99, or 72 cents each.
A discussion on the Walmart subreddit r/Walmart claimed that Walmart's egg prices had soared over 140% in just a one-month period in 2024.
"I went with the Walmart brand eggs in the carton so I could just pour it in the pan and make them, and it was nearly $6," one commenter wrote on the post. "I was shocked at the prices because it wasn't long before I saw 12 pks for like $2 and $3."
"I KNEW I WASN'T CRAZY," another wrote.
"It's particularly ridiculous to focus on egg pricing as eggs are typically loss leaders (items sold for less than what they cost stores to bring in)," another pointed out. "There are no real profits on the retail side of the egg business, even when prices are high. Pricing is an unusually pure reflection of supply."
Walmart President and Chief Executive Doug McMillon said in late 2024 that he was "disappointed" with how stubbornly high inflation remained, and he cautioned investors to temper their optimism going into the new year.
“I don’t know what the whole year is going to look like. I hope and I think it could be better as these commodities adjust — some of them,” he said.
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