Egg prices continue to escalate — if shoppers can even locate them in grocery stores.
In January alone, the price of eggs across the U.S. increased by more than 15% compared to the previous year, which is five times the overall U.S. inflation rate of 3%, according to Consumer Price Index data released on Wednesday. In 2019, a dozen eggs cost around $1.54, but by last year, the price had skyrocketed to $4.15 — marking a 170% rise, as reported by CBS News’ price tracker of everyday goods.
The dramatic rise in egg prices last month highlights the severe effects of avian flu, which resulted in the deaths of over 40 million egg-laying birds last year. Including both ducks and chickens, a total of 148 million birds have been ordered to be euthanized since the current strain of bird flu, H5N1, began its spread across the U.S. in 2022.
If there is any positive note, it’s that egg prices are expected to rise at a slower rate throughout the year. The surge in January “is likely an isolated incident,” stated EY Chief Economist Gregory Daco. However, this may provide little comfort to the millions of consumers still facing higher food prices at home and in restaurants due to record egg prices.
What is driving the high egg prices?
The spike in egg prices is primarily attributed to the bird flu, which continues to affect farms and decimate flocks. When demand remains stable for a product that isn’t easily substituted and supply decreases, prices are inclined to rise.
“If you don’t have a bird, you don’t have an egg,” stated Sharon Linsenbardt, founder and owner of Barn Buddies Rescue and Sanctuary in Las Vegas, to CBS News reporter Andres Gutierrez. The millions of egg-laying hens lost to avian influenza cannot be easily and rapidly replaced, Linsenbardt added, who has limited sales to two dozen eggs per family.
“High egg prices result from the avian flu situation, which impacts the supply of available eggs for sale,” Columbia Business School professor Yiming Ma informed CBS MoneyWatch. “Lower supply drives up prices.”
According to David Anderson, an agricultural economics professor at Texas A&M University, egg supplies will likely remain limited as long as bird flu outbreaks persist.
Anderson also noted a cultural shift that may be worsening the issue, remarking that Americans are increasingly opting for more protein-rich diets, thus elevating the demand for eggs.
“We are experiencing a nutritional trend, and as people incorporate more protein into their diets, it elevates overall egg demand and establishes a higher baseline for that demand,” he said. “Then, when we face a supply shock, it inevitably leads to increased prices.”
Retailers imposing egg limits
The ongoing egg shortages and escalating prices have recently led 24-hour breakfast chain Waffle House to implement a 50 cent surcharge per egg, while various major grocery chains are enforcing limits on the number of eggs customers can buy at once.
Walmart is restricting purchases of 60-count cartons to two per transaction “to ensure that more customers can access eggs,” stated a representative for the retailer.
“Despite the tight supply, we are collaborating with suppliers to meet customer demand while striving to keep prices as low as possible,” the spokesperson added. At Sam’s Club, a Walmart subsidiary, egg purchases have been limited to two per item at its nearly 600 locations nationwide.
As of Wednesday, most of Target’s nearly 2,000 U.S. outlets had eggs available, and the retailer only imposed purchase limits in its Hawaii locations, according to a spokesperson for the company. “We will monitor the situation and adjust as necessary,” they added.
Kroger, which operates around 2,700 grocery stores in the U.S., has not applied a company-wide limit on egg purchases, although certain stores are restricting customers to two dozen per visit.
Giant Eagle reported that it was offering conventional shelled eggs “at or below our cost across all supermarkets” to mitigate the impact of surging egg prices on consumers. The regional grocery chain, which operates over 470 stores in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia, is encouraging shoppers to limit their purchases to three egg cartons per visit.
Amazon-owned Whole Foods and Costco did not respond to inquiries for comment.
When can we expect egg prices to decrease?
According to the U.S. Department of Agriculture, egg prices are anticipated to rise another 20% in 2025. Despite the climbing costs, consumer demand remains robust and could potentially increase as Easter approaches, leaving little hope for price relief.
Experts agree that two primary factors need to occur for prices to stabilize. First, the U.S. must successfully contain the bird flu, and second, older chickens that are no longer productive, along with diseased chickens, must be replaced. The timeline for achieving this remains uncertain.
“It’s uncertain whether we’ve fully contained the bird flu outbreak. That’s the first necessary step, and it will be a few months before we can breed and replenish the laying population,” remarked Bryan Spillane, senior food and beverage analyst at Bank of America, to CBS MoneyWatch.
He predicts it will take at least another three to six months before prices begin to stabilize. If restaurants persist in applying surcharges for eggs, that could ultimately dampen consumer demand.
In the short term, Anderson anticipates that eggs will continue to strain consumers’ finances. “I wouldn’t be surprised if prices keep rising, as outbreaks are ongoing,” he stated.
Cost-conscious consumers can shop around among various grocery stores, noted NerdWallet spokesperson Sara Rathner, but they should be cautious that any minor price differences could evaporate savings on gas.
Other strategies to save on eggs include using store flyers or purchasing them with a cash-back credit card. “That way, you’re leveraging multiple methods to reduce your expenses,” she advised.
