US egg prices rise by 10% again in February, signs of relief emerge?

On Wednesday, March 12th, the U.S. Department of Labor released a highly anticipated inflation report. While the overall inflation rate was lower than expected, egg prices still increased by 59% compared to the previous year. However, there are signs indicating that a decrease in demand is bringing some relief.

The price of eggs in the United States continued to rise by 15% in January, and the report released by the Bureau of Labor Statistics on Wednesday showed a further 10.4% increase in egg prices in February after seasonal adjustments, contrary to the overall trend of slowing food inflation. However, the U.S. Department of Agriculture stated that due to weakening demand, there is an opportunity for supply to catch up, and prices could see a significant drop in the coming weeks.

According to the U.S. Department of Agriculture, as of March 7th, the price of eggs in the U.S. was $6.85 per dozen, a 16% decrease from the record high of $8.15 two weeks earlier. However, the average price for a dozen eggs in California is as high as $7.57, with California being one of the states most severely affected by avian flu.

The outbreak of avian flu has led to the mass culling of laying hens, causing a tight supply of eggs and pushing prices to historic highs. Recently, consumers have been faced with empty supermarket egg shelves and notices limiting egg purchases.

Bloomberg reported that Amy Smith, Vice President of Advanced Economic Solutions Inc., a supply chain consulting company, stated, “This is something that is in everybody’s shopping cart every week, and when they see prices double, they want to know what’s going to be the next item to increase. This creates a psychological burden for consumers.”

If you are looking for the lowest egg prices, online resources can be helpful. The Pantry & Larder website has a page called Eggspensive, which tracks the prices of a dozen eggs at Walmart stores nationwide.

Another price tracker, The Krazy Coupon Lady, compares prices at stores across the U.S. and compiles a list of supermarkets offering the cheapest eggs. The website has a separate section listing weekly egg sales and coupon deals.

Nevertheless, there are reasons to believe that egg prices will return to normal later this year.

The U.S. Department of Agriculture stated in its report that with egg prices reaching record highs and no major avian flu outbreaks in recent weeks, consumer demand has been impacted, providing an opportunity for the production sector to make progress in reducing egg shortages.

Cnet reported that David Anderson, a professor of economics and business studies at Centre College in Danville, Kentucky, believes that the timing of the decline in egg prices will depend on the trajectory of the avian flu outbreak and the replacement of culled hens.

“If the avian flu outbreak does not worsen significantly, I expect egg prices to trend downward,” Anderson said. “Over time, the culled hen population will be replaced, new sources of eggs will emerge due to the high prices, and consumers with a lower to moderate preference for egg products will adapt to substitutes, especially in areas where egg prices are highest. Increased supply and decreased demand will lead to price reductions.”

The Department of Agriculture stated that retailers are also reducing advertising and promotions with promotions “almost non-existent.”

Bloomberg reported that Brian Moscogiuri, Vice President of Eggs Unlimited, said, “We are actually seeing prices drop quickly. We are seeing consumers starting to resist some of the high prices they see. Demand seems to be sharply declining.”

The U.S. Department of Agriculture predicts that egg prices will start to decline from the spring. According to its monthly “World Agricultural Supply and Demand Estimates” report, egg prices are expected to fall to $3.90 per dozen in the second quarter of 2025 and further drop to $2.90 in the third quarter. However, egg prices may still remain high throughout March, and if avian flu cases continue to spread, prices could rise further.