The new year has brought new opportunities for growth while we continue navigating some murky waters in the supply chain. Through it all, Avendra International remains vigilant in our commitment to securing ethically sourced, cost-effective solutions for our clients.
Inflation and Labor
Labor has remained strong, with unemployment meeting expectations at 4.2%. This strong labor market has contributed to relatively stable inflation. Our experts predict a slowing in interest rate reductions from the three we saw in 2024.
Consumer sentiment increased as we wrapped up 2024 despite a slight elevation in the U.S. Consumer Price Index. While inflation remains above pre-pandemic levels, it does show many signs of stabilizing.
Energy and Transportation
Ongoing instability within the Middle East continues to threaten oil price stability. Weaker global demand has led OPEC+ to reduce its oil demand growth forecast. Overall, regular unleaded gas prices are down from this time last year.
An averted strike by the International Longshoreman’s Association has prevented any work stoppages; however, container rates may increase.
Food and Agriculture
Adverse weather conditions and Highly Pathogenic Avian Influenza (HPAI) are among the impacts being felt throughout the food and beverage sector. Coffee production has been impacted by weather conditions in Brazil and Vietnam, and coffee commodity prices are trending up.
Retail egg prices were up with seasonal demand at the end of 2024 and are expected to ease slightly as seasonal demand ebbs. But the depopulation of 15 million egg-laying hens during Q4 of 2024 has taken its toll on the market.
While there may be a slight price relief for beef in early 2025, herd rebuilding continues to be delayed by drought and higher operational costs, so for the long term, beef prices continue to be high.
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