A dozen big white eggs cost $2.14 in the previous year. In November, the amount reached $3.65, as reported by the BLS. There is a 70% rise. There is a scarcity, that’s why. Low supply is the root cause of shortages. The loss of countless birds due to avian flu has a direct impact on egg costs.
Tariffs have the potential to unleash a new wave of widespread inflation. One might be surprised to learn how closely related eggs and wide inflation are.
A staggering 40 million egg-laying chickens perished last year due to avian flu, as reported by The Washington Post. The supply of many goods and services, including electricity and automobiles, could be reduced or eliminated as a result of tariffs. June 2022 saw a 9.1% year-over-year increase in the CPI due to a string of shortages.
Meat, fowl, and fish were also on the list, along with eggs. Annual growth in the food category was 11.7%. In January of 2022, the egg scarcity began.
Similar to the chicken situation, tariffs might lead to a string of shortages. June 2022 saw a 59.9 percent increase in the CPI gas price index. Due to Russia’s invasion of Ukraine, supplies were limited. Oil prices would skyrocket once again if the Trump administration imposed 25% tariffs on Canada.
When it comes to heavy crude, the United States gets the most from Canada. Americans would be unable to afford to drive or heat their homes if fuel oil and gas costs skyrocketed.
Vehicles are another product that Canada ships to the United States. Sales of brand-new automobiles increased by 11.4% in June 2022. Due to supply chain issues brought on by the COVID-19 pandemic, the rise was substantially higher earlier this year and in 2021. Vehicles coming in from Mexico can be subject to taxes.
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Besides gems and plastics, consumer electronics, beer, and plastics are also major imports from Mexico.
Inflation in the middle of 2022 caused widespread recession fears in the United States. The Federal Reserve’s rate cuts helped mitigate the severity of that tragedy.
For a long time, the consensus amongst analysts was that the Fed would keep decreasing rates. Nonetheless, a robust labor market is a key driver of inflation, and there is some indication of inflation. Please tell me what will happen to the planned layoffs in the coming year. New difficulties may arise for the Fed if tariffs are imposed.
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