Bird flu is making inflation worse
A deadly epidemic has struck birds across the Midwest and, while it’s no COVID-19, the consequences are far-reaching.
Avian influenza, often called bird flu, is spreading from migratory waterfowl to other wild birds and on to poultry farms. While the disease is believed to pose no threat to human health, this lifeand-death matter for birds is hitting people where they can least afford it at a time of high inflation.
The price of chicken and eggs is soaring as producers try to stop the spread by destroying infected flocks numbering in the millions. The outbreak could get worse before it gets better, putting pressure on grocery store shoppers who are fast running out of options for affordable animal protein.
Between the supermarket and the gas pump, there’s nowhere to hide from high prices these days. People want someone to blame, and incumbent politicians will be in trouble if this year’s midterms become a referendum on the price of wings and drumsticks.
Elected officials trying to soothe ruffled feathers among voters are coming up short. Actions aimed at restoring approval ratings generally create new economic and political problems, as in the case of temporarily waiving gas taxes. Pouring on government money also is no solution. The trillions already spent on pandemic relief has surely contributed to today’s rising prices.
The reality is that some factors underlying inflation can sort themselves out quickly, while others are going to take a frustratingly longer time. Fortunately for backyard barbecues and breakfasts, the price of commodities like chicken and eggs can move down again in short order.
We expect the Fed to raise interest rates aggressively in the coming year, and decrease its bond holdings, accepting shortterm pain to avoid longer-lasting malaise. It’s a necessary trade-off.
The Fed has a clear mandate to keep inflation at an average of 2% annually while promoting full employment. Those goals can conflict, but at least everyone knows the target. And with annual inflation rising to 8.5% at the end of March (including core inflation at 6.5%) we also know the Fed has serious work to do.
While policymakers are wellequipped to fight inflation, that’s cold comfort for the birds and those who care about them. Even in the heavily subsidized world of agriculture, government protection isn’t usually enough to make producers whole when they’re forced to destroy commercial flocks.
As in fighting inflation, we’re not helpless. Those who encounter five or more dead waterfowl, water birds or raptors in one location should report it to the U.S. Wildlife Services so the epidemic can be tracked. Some authorities, including the Department of Natural Resources, have recommended taking down bird feeders and watering stations to help our feathered friends socially distance. Above all, they say, it’s vital that anyone who owns poultry keep wild birds away from their flocks.
No chance of mask mandates for beaks, of course. But if they would help, we’d support them. There have been more than enough inflationary disruptions to the chiller case at the supermarket.