Egg Prices Begin to Fall, Easing Burden on Consumers

After months of soaring prices and accusations of price gouging, egg prices in the United States are finally starting to come down. Federal data on groceries indicates a steady decline in egg prices since the beginning of the year, when the average cost per dozen reached nearly $5, more than double the average price recorded in January 2022.

According to the US Department of Agriculture, wholesale egg prices have now dropped to an average range of $1 to $1.40 across different regions of the country. Grocery store executives interviewed by the Wall Street Journal also confirmed that egg prices are expected to be largely under $2 per dozen nationwide.

The steep increase in prices can be attributed to various factors. Inflation, which affected every aspect of egg production, packaging, and shipping last year, played a significant role in driving up costs. Additionally, the worst outbreak of bird flu in US history further exacerbated the situation, causing the death of millions of birds and disrupting the egg supply chain.

Record high prices prompted some consumers to seek alternatives, such as raising their own chickens to produce eggs at a lower cost. However, recent months have seen a decline in prices for eggs and other grocery staples, including bacon.

The most recent data from the Bureau of Labor Statistics’ Consumer Price Index revealed that egg prices had fallen to around $3.27 per dozen in April. Research firm NIQ reported that prices reached approximately $2.70 per dozen by the end of April.

The US Department of Agriculture has reported a 5% increase in the egg-laying hen population compared to last May, with a further 1% bump from April to May. While the resolution of the bird flu outbreak is expected to contribute to lower prices, experts suggest that they may not return to pre-inflation levels. This is due, in part, to more farmers transitioning to what is considered more ethical forms of egg production, such as cage-free environments for hens, which require more space and are typically more expensive.

As egg prices gradually decrease, consumers can breathe a sigh of relief, knowing that their grocery bills will not be as heavily impacted by the cost of this essential item.