Egg prices again reached a record high in February, as the bird flu continues to run rampant and Easter and Passover approach.
The latest monthly Consumer Price Index showed a dozen Grade A eggs cost an average of $5.90 in U.S. cities in February, up 10.4% from a year ago. That eclipsed January's record-high price of $4.95.
Avian flu has forced farmers to slaughter more than 166 million birds, mostly egg-laying chickens. Just since the start of the year, more than 30 million egg layers have been killed.
If prices remain high, it will be the third year in a row consumers have faced sticker shock ahead of Easter on April 20 and Passover, which starts on the evening of April 12, both occasions in which eggs play prominent roles.
The price had consistently been below $2 a dozen for decades before the disease struck. The U.S. Department of Agriculture expects egg prices to rise 41% this year over last year’s average of $3.17 per dozen.
But there may be light at the end of the tunnel. The USDA reported last week that egg shortages are easing and wholesale prices are dropping, which might provide relief on the retail side before this year’s late Easter, which is three weeks later than last year. It said there had been no major bird flu outbreak for two weeks.
“Shoppers have begun to see shell egg offerings in the dairy case becoming more reliable although retail price levels have yet to adjust and remain off-putting to many,” the USDA wrote in the March 7 report.
David Anderson, a professor and extension economist for livestock and food marketing at Texas A&M University, said wholesale figures dropping is a good sign that prices could go down as shoppers react to the high prices by buying fewer eggs.
“What that should tell us is things are easing a little bit in terms of prices,” he said. “So going forward, the next CPI report may very well indicate falling egg prices.”
However, he doesn't expect lasting changes until bird stock can be replenished and production can be replaced.
“Record high prices is a market signal to producers to produce more, but it takes time to be able to produce more, and we just haven’t had enough time for that to happen yet,” he said. “But I do think it’s going to happen. But it’s going to take some more months to get there.”
Emily Metz, president and CEO of the American Egg Board, said wholesale prices dropping is good news, but noted that increased demand for Easter could drive a temporary increase in prices.
“In addition, egg farmers are closely watching the spring migration of wild birds, recognizing that wild birds are a leading cause of the spread of this virus and pose a great and ongoing threat to egg-laying flocks,” she said.
Advocacy groups and others have also called for a probe into whether egg producers have used the avian flu to price gouge. But egg producers say the avian flu is solely behind the elevated prices.
Meanwhile, restaurants have added surcharges and made other changes to offset the cost of eggs.
The Trump administration has unveiled a plan to combat bird flu, including a $500 million investment to help farmers bolster biosecurity measures, $400 million in additional aid for farmers whose flocks have been impacted by avian flu, and $100 million to research and potentially develop vaccines and therapeutics for U.S. chicken flocks, among other measures. But it will likely take a while for that plan to make an impact.
Inflation is still running hot, little surprise to consumers feeling the sting in everyday purchases.
The Consumer Price Index surged 2.8% over the prior year in February, and the month-over-month increase was 0.2% — both measures cooling from January.
Yet categories like food, medical care, and used cars remain elevated.
Grocery price growth was flat in February following a 0.5% jump in January. But even with that slowdown, major food groups are still experiencing price hikes.
The big (old) story: eggs, which are up a whopping 59% from a year ago.
A dozen large Grade A eggs, on average, cost $5.90 in February, up from $4.95 in January and far higher than the $2.99 average of a year ago.
Other breakfast staples like coffee and bacon are also up year over year.
Meat, especially beef, went up: Ground beef increased 2.7% and beef roasts grew 2.8%. According to the St. Louis Fed, a pound of ground beef now averages $5.96 vs. $5.48 in February 2024.
Some food categories saw slower price growth: fruits and vegetables were down 0.5%, and dairy products slowed a full 1% from January.
The cost of eating out grew 0.4% from January and was 3.7% higher than a year ago.
Medical costs, senior care, and health insurance keep rising
Medical services grew 0.3% from January and are 3% higher than a year ago. That category includes hospital costs, which are 3.6% higher than a year ago in February, and nursing home care, which is up 4.1%. Home healthcare was 5.6% higher than a year ago, the BLS found.
Health insurance rose 3.9% compared to February 2024 and was up 0.3% monthly. Increases in prescription drugs were flat month over month but were 4.6% higher than a year ago.
The cost of driving
Price growth for used cars had slowed since last year, but in January surged 2.2% and notched another 0.9% jump last month. New vehicle price growth was flat — a category to keep an eye on with tariffs on foreign cars expected to show up soon in sticker prices.
Auto insurance, which has been soaring for two years, grew just 0.3% month over month but is nearly 11% higher than a year ago.
Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.
There was better news at the gas pump.
The gasoline index slowed by 0.1% in February, a relief from two straight months of steep increases. As of March 12, the national average for gasoline was $3.08 per gallon, according to AAA data. That's down from an average of $3.15 in January and $3.39 a year ago.
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What's next
Inflation remains above the Federal Reserve's target of 2%. Combined with overall economic uncertainty around tariffs, the Fed is expected to hold interest rates steady during its policy meeting later this month.