Prices for goods and services increased less than expected in February, according to the Bureau of Labor Statistics, but our Maine Public economic price index indicates some prices are rising faster in Maine than the national average.
In collaboration with Dr. Michael Cauvel, associate professor of economics at the University of Southern Maine, our index examines prices of the same goods at four grocery stores across the state to see how they change over time.
Cauvel said in February, grocery prices in Maine increased 1.5% almost entirely due to the price of eggs alone.
"The avian flu has been increasing the price of eggs across the state," Cauvel said. "On average, egg prices went up by 17%."
Egg prices increased 10.4% nationally last month according to The Bureau of Labor Statistics, meaning Maine outpaced the country by more than 6%.
Heating prices in Maine increased half a percent while Zillow's average rent price dropped $50 last month. Cauvel says both numbers are interesting, but we will have to wait for next month's data to see if they turn into trends.
Inflation slowed more than expected in February, according to the Bureau of Labor Statistics, suggesting the prices of goods and services is yet to reflect the effect of tariffs. When they do take hold, our Maine Public economic price index indicates Maine will be hit especially hard.
Cauvel said heating prices increased a half percent in February, and he expects them to jump significantly higher.
"I think that's something that many experts have predicted is going to lead definitely to an increase in heating costs across Maine, because a lot of our heating oil is imported from Canada," Cauvel said.
Energy prices increased .2% nationally this month primarily due to electricity prices while Maine increased .5%, due to increased heating fuel prices.
Cauvel said he believes a 2.5% drop in rent prices could be due to seasonal effects.
"If you rent something starting in the winter, it might be a little cheaper than if you start in the summer, when we might have perhaps more people looking to move, more people moving into the state," Cauvel said.
He said it could also be due to long-term housing projects finally becoming available — increasing the amount of housing in the state. Cauvel said we cannot know for sure based on one month but is something we will continue to keep an eye on.
Whole Foods egg prices were the only retailer's to remain the same since our January data collection.
"There were no changes in any of the prices at Whole Foods that we noticed. So it's possible that they use a different pricing model, where they think about changing prices less frequently," Cauvel said.
Cauvel said a student suggested this could be due to Whole Foods' relatively high prices and its ability to absorb a cost hit better than a retailer like Hannaford, which may be facing more competition to keep prices low. Cauvel said we will wait and see if Whole Foods changes any of their prices next month.
