After facing months of sticker shock at grocery stores around the country, American consumers are finally receiving some relief from inflation as prices for many products start to stabilize. Food prices went up by just 0.1 percent in August, a far smaller increase than in months past and a possible sign of lower prices to come. Still, there’s one major exception to this trend: eggs. American families paid an average of $3.20 for a dozen Grade A large eggs in August, a 4.8 percent increase from 30 days prior. The situation is particularly bad in costly markets like California, where a dozen large, white cage-free eggs cost more than $5. On average, Americans are paying 28 percent more for eggs than they did a year ago.
If you’re thinking you’ve heard this news before, you’re right. Egg prices have been spiking up and down for the past two years as farmers struggle with bird flu infecting their hens. Highly pathogenic avian influenza, more commonly known as bird flu, had a historic outbreak in 2022 and another surge last year. As a result, egg production has fallen by more than two percent in 2024. “Bird flu is the number one reason for higher prices, absolutely,” said Phil Lempert, a grocery industry analyst. “Think about how they are housed: small spaces with lots of chickens. When one chicken gets bird flu, they’ve got to cull the entire flock. That’s the problem.”
Eggs used to be one of the cheapest protein sources available, making them cost effective for lower income families. Before the 2022 bird flu outbreak, the average cost of a dozen eggs had largely stayed below $2 since 2016. “Going from $2 per dozen eggs to $4 or $5 is a big jump on a tight budget,” Lempert said. “When prices are high, I worry this population may not be getting enough protein.” Experts say the average cost of eggs will go back down if the industry can get through the next six months without a major bird flu outbreak.
Questions:
- Why are prices for eggs rising when overall food prices are falling?
- How could the average cost of eggs impact budgets for lower income households?
Source: Matt Egan, “Here We Go Again: Egg Prices Are Spiking. Here’s Why,” CNN, Sept. 25, 2024.