Egg prices shot up at the start of the year, but data updated Wednesday by the Bureau of Labor Statistics showed that, at around $2.67 per dozen, egg prices are the lowest they’ve been since last spring.
Prices are not just at their lowest in more than a year. They’ve dropped faster than they have in decades (nearly 14% from April to May), said a Wednesday Axios report. What’s behind the plummet?
First of all, egg production is up. According to the U.S. Department of Agriculture, egg production was up 1% this April compared to last April at more than 9 billion. While egg-laying chickens, 386 million of them, were up 4% from the previous April, egg production from layers was down 2%.
An outbreak of avian flu impacted production in 2022 and early 2023. It resulted in the death of an estimated 53.7 million chickens in 2022, per AARP.
“With the recent detections of the Eurasian H5 strain of highly pathogenic avian influenza (HPAI) in wild birds and domestic poultry in the United States, bird owners should review their biosecurity practices and stay vigilant to protect poultry and pet birds from this disease,” the USDA said in January.
At that time, egg prices reached a peak of about $4.80.
Overall inflation in the COVID-19 recovery period also impacted egg prices – particularly transportation costs. Last June, average per-gallon gas prices in the U.S. were around $5, and they have now come down to around $3.60, according to AAA.
While egg prices and gas prices are down, the BLS Consumer Price Index report released Tuesday indicates that inflation is still an issue. In May, the CPI rose 0.1%. During the 12-month period ending last month, it rose around 4%. Forbes noted this week that prices for meat and frozen fruit climbed in May.
In an effort to bring inflation down to 2%, the Federal Reserve Bank has increased interest rates 10 times in recent months. On Wednesday, the Fed decided to pause raising the rates, at least for June.
“The Committee will continue to monitor the implications of incoming information for the economic outlook,” said a statement from the bank.
Interest rates and inflation may still be high, but it seems that Americans should be able to rely on reasonable egg prices for the time being. An Egg Market News Report released this week said that “the undertone is steady to instances firm,” regarding the market outlook.
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