The U.S. Justice Department has initiated an investigation into possible antitrust violations concerning the dramatic increase in egg prices, as reported by The Wall Street Journal. The inquiry, still in its preliminary phase, aims to determine if major egg producers are collaborating to elevate prices or limit supply.
This investigation arrives at a time when egg prices have surged, prompting some restaurants to modify their menus and causing grocery stores to experience substantial shortages. For instance, Denny’s recently implemented a surcharge on egg dishes, citing rising costs spurred by the supply crisis.
According to recent data from the Bureau of Labor Statistics, the price of eggs has skyrocketed by 53% year over year. Furthermore, the cost saw a significant 15.2% spike between December and January, marking the most substantial rise in egg prices since June 2015.
While the avian flu outbreak is a contributing factor to these price increases, advocacy group Farm Action has urged regulatory authorities to look deeper into potential market manipulation. Last month, they called for an investigation into other factors influencing the rising costs.
As of now, CNBC has not verified the ongoing status of this investigation, and there has been no comment from the Justice Department in response to requests for information.
- Why Tesla’s stock is unraveling and future projections from Barclays.
- Income generation strategies from Nvidia during periods of market volatility.
- Insights on the growing interest of hedge funds in promising ‘rising star’ stocks, as identified by Goldman.
- Analysis of deeply oversold S&P 500 stocks that might be poised for a rebound.
