This is going to make everyone mad.
Despite wages rising, many Americans aren’t experiencing the fruits of labor because the cost of goods is eating away at any wage gains. The latest headline-grabbing gains: meat and poultry prices.
A new analysis shows that the soaring cost of poultry is unlikely to abate; however, consumers could experience some reprieve as analysts believe pricier cuts like steak should level out later this year.
This week, Evercore ISI issued a protein inflation forecast, noting that the protein prices are set to increase “substantially” because of the higher feed costs.
Chicken breast is a frontrunner when it comes to gains, as data shows the popular cut nearly reaching 70 percent year-over-year.
Pricier cuts, however, are expected to level off or even drop, prompted by consumers changing their buying habits that reflect their tighter budgets.
Evercore’s analysis forecasts Ribeye and chicken wings dropping by about 10 percent respectively.
Evercore’s senior managing director, David Palmer, noted that “Chicken and hamburger prices are expected to continue rising, while steak prices will likely moderate.”
Grain costs are the most significant factor in “chicken and hamburger prices” increasing. The Evercore report points to grains like wheat, soybeans, and corn, all used in livestock feed, as fundamental contributors to the sharply rising costs.
Wheat is one of the grains that are hardest hit as prices have greatly increased following the Russia-Ukraine conflict.