Despite the cooling of the U.S. Consumer Price Index (CPI) inflation in March, egg prices did not decline, instead reaching a record high. According to data from the U.S. Bureau of Labor Statistics, egg prices rose by 5.9% month-over-month in March, with the cost per dozen eggs reaching $6.227, a year-over-year increase of 60.4%. This is not favorable for consumers, particularly as Trump had tried to lower egg prices, viewing it as a symbol of consumers struggling with high food bills. Even though wholesale prices fell back to $3 per dozen by the end of March, a nearly 50% drop from the beginning of the month, retailers have not passed on these savings to consumers.
Jada Thompson, an agricultural economist from the University of Arkansas, noted that egg wholesale prices only began to decrease in mid-March, and even with the drop at the end of the month, grocery stores may take some time to reflect these price changes. Brian Earnest, an economist at CoBank, stated that retailers are more cautious in adjusting prices, especially in situations of supply instability, fearing that price cuts could lead to supply shortages and losses. Moreover, frequently changing product price tags adds to their workload.
As avian flu risks subside and production gradually recovers, egg prices may drop to $2 to $6 per dozen in the coming months, but retail prices remain unpredictable, particularly with unstable supply. Meanwhile, with Easter approaching, the surge in egg demand could further support price hikes. Although avian flu killed 30 million laying hens this year, the outbreak is largely under control, with a significant decline in poultry infections in March.
Currently, egg prices vary widely across the United States. In downtown San Francisco, free-range eggs are priced as high as $9.99 per dozen, compared to $4.97 per dozen at Walmart in Nebraska. Despite the decline in wholesale prices, retail prices remain high, meaning consumers have not yet enjoyed the anticipated price relief.
