The egg is a basic food basket product whose price was affected this year. Although the cost of eggs has risen sharply this year, customers can expect a significant drop.
The most relevant reason for the increase in the price of eggs was the outbreak of highly pathogenic avian influenza. Another compelling reason for the increase in prices is inflation in the United States and in the world.
After big increases in April and May, in June, egg prices were 33.1% higher than in June 2021. Egg prices soared 47%, reaching a peak benchmark price of $3.38 per dozen in July, according to Bloomberg.
Why the price of eggs could go down
According to USDA data, the outbreak contributed to driving up egg prices and driving up poultry prices, as more than 40 million birds in 37 states have been affected.
The price of eggs has already fallen 37% from its all-time high in late July, according to commodity researcher Urner Barry via Bloomberg. The downward price trend is believed to continue.
The cost of eggs is set to go down as cases of avian flu are declining.
“I think we’ve peaked,” said Amy Smith, vice president of Advanced Economic Solutions through Bake Mag.
Ms. Smith noted that from June 2 (through June 6) only one commercial flock and no layer flocks had been detected with influenza viruses.
“Farms are restocking birds that they had to kill during this year’s highly pathogenic avian influenza outbreak,” John Brunnquell, CEO of Egg Innovations, one of the largest egg producers in the US, told Bloomberg.
Overall, the US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for July was unchanged from last month and year-over-year inflation was 8.5% compared to 9.1% in July. .
Grocery store food groups posted increases ranging from 9.3% to 14.9%.