Why are egg prices rising again in the U.S.?
Inflation may be slowing down but egg prices are bucking the downward trend. Find out why this item’s cost is on the rise again and when it will go down.
Consumers have been given some breathing room by the recent easing of inflation, but this is not the case for egg lovers.
The price of this popular breakfast item has risen 4.8% from July to August, and jumped by more than 28% compared to the rate from the same month last year.
Numbers from the Bureau of Labor Statistics show this to be the steepest price hike among food items the agency is monitoring. Overall grocery prices registered a less than 1% increase in August compared to 12 months ago.
READ ALSO: How a port strike along the East Coast would affect the US economy
Why are egg prices rising again in the U.S.?
The cause of the price increase is one the country has experienced in the not-so-distant past. Poultry farms around the United States have been dealing with an outbreak of bird flu.
The Centers for Disease Control and Prevention says the highly transmissible avian influenza has affected more than 100 million birds throughout 48 states since January 2022, severely cutting down the number of egg-laying chickens.
Prices reached record levels in late 2022 to early 2023, peaking at $4.82 for a dozen large Grade A eggs. The Bureau of Labor Statistics puts the current average price at $3.20 per dozen.
The price went down from the highs of early last year because bird flu cases decreased later in 2023. There were no H5N1 infections recorded from May through September last year. However, the virus began infecting birds again in November, causing prices to go back up.
READ ALSO: Why Americans should consider flood insurance
When will egg prices go down?
Brian Moscogiuri, vice president at leading supplier Eggs Unlimited, told CNN that wholesale prices are now heading down as overall inflation and feed prices have decreased, a lowering of costs that could eventually be felt by consumers.
However, Moscogiuri says the industry needs time for egg production to recover.
“If we can get through a 6-8 month stretch without AI (avian influenza), markets should return toward more normal, long-term average levels,” he said.