The February consumer price index report might not be the best reflection of the current economy given recent global events, but it does include an Easter egg of sorts. The price of eggs dropped by more than 40% year over year in February, as shortages caused by the longest-running
avian flu outbreak have stabilized. But that relief in the egg aisle hasn’t translated to other staples.
The national average was $2.50 for a dozen large, grade-A eggs last month, after hitting a high of more than $6 a year ago.
The shock was specific, but the high cost of eggs came to feel like a symbol of everything that was unaffordable, said Gregory Daco, chief economist at EY-Parthenon. “The key element when it comes to these price categories is what economists call salience, which is essentially how visible these prices are to the average consumer,” he said. Stores might not post the price of eggs on giant signs like gas stations but consumers have a strong mental anchor of how much a staple should cost.
“And so when these prices change, they tend to have an immediate effect, not just on consumer wallets, but also on the psyche of consumers across the U.S.,” Daco said.
Thing is, the drop in egg prices might not stretch as far as consumers hope, said David Ortega, a food economist at Michigan State University. | 
