Why prices of eggs have reached new highs of Rs 7 apiece
It looks a little more difficult to put all our eggs in one basket, as prices of this protein have now skyrocketed.
Citing seasonal trend, experts have said that prices of eggs usually rise during winter season. However this price hike has not been witnessed before.
The hike in prices was due to an estimated 15% increase in demand, a report by Financial Express on Monday quoted Executive member of the National Egg Coordination Committee (NECC) Raju Bhosale.
Bhosale added that this increase in prices was also due to costlier vegetables. Onions and tomatoes are now priced at Rs 40-50 per kg.
“When vegetables turn costly, people switch to eggs, pushing up its rates as well. This is a imple substitution effect,” Bhosale said.
Retail inflation is also expected to shoot up in November after reaching a seven month high of 3.58% in October.
"We expect CPI inflation to rise above 4% in November and stay above the RBI's target of 4% through 2018," Nomura said in a research note.
Bank of America Merrill Lynch analysts are of the opinion that consumer price index inflation will touch 4.5% in November.
The report also cited ‘lower realisation of eggs as well as broilers,’ which was linked to demonetisation of higher currency notes.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.