As of early February 2025, the United States is experiencing a notable increase in inflation, with a significant contribution from rising egg prices. In December 2024, the annual inflation rate rose to 2.9%, up from 2.7% in November.
Egg prices have seen a substantial surge, with the average cost of a dozen Grade A large eggs reaching $4.15 in December 2024, up from $3.65 in November.
This increase is primarily attributed to a severe bird flu outbreak affecting poultry production.
The escalation in egg prices has impacted household budgets, leading consumers to reassess their spending habits. Retailers and grocers are grappling with the challenge of managing increased costs and supply shortages. For instance, Waffle House has implemented a 50-cent surcharge per egg to cope with the rising expenses.
Beyond the immediate effect on food costs, the surge in egg prices raises concerns about the broader economic outlook. Factors such as supply chain disruptions, heightened demand, and avian flu-related production issues contribute to the uncertainty. If these trends persist, there is a risk of sustained higher prices across various goods and services, further straining household finances. The Federal Reserve is monitoring these developments closely, with policymakers deliberating on potential responses to mitigate the impact of inflation.
