- Egg prices have shot through the roof, and it may be a little while longer before buyers get relief.
- The USDA projected the price of a dozen eggs would drop to an average of $2.50 in the second quarter.
- Average prices jumped 58% between the first and fourth quarters of 2024.
A mini egg-affordability crisis that's become the poster child for inflation is expected to ease this year, though buyers should brace for their morning scramble to cost a little more for at least the next few months.
According to data from the US Department of Agriculture, the average price for a dozen eggs is projected to drop from $4.80 in the first quarter to $2.50 in the second quarter. The agency forecast prices would bottom out by the third quarter before ticking up moderately in the final months of this year.
The outlook should be welcome news to US shoppers exhausted by years of elevated prices, with the price of eggs in particular surging in recent years.
Average prices rocketed up 58% between the first and fourth quarters of 2024, with the price of a dozen eggs above $3 since June.
Bulk prices paid by retailers reached even higher extremes. According to the global commodities tracker Expana, Midwest large eggs hit $7.27 a dozen, compared with a five-year average of $2.10.
The biggest culprit behind the spiraling price of eggs is a bird flu epidemic that's crushing supply. The contagious disease led to the depopulation of 13.2 million birds in December, the USDA reported last week, and outbreaks have been confirmed in seven states.
That's left the market with fewer eggs, while demand has increased.
Sources told Business Insider previously that increased demand for eggs could be chalked up to several factors. Cold weather has been a driver as people stock up during inclement weather, while the cooking-heavy holiday season may also be to blame. Even the push toward cage-free chickens — a typically more expensive form of egg production — may be boosting prices.
"Shell egg availability remains limited and inconsistent in many retail markets with many affected grocers employing steps to limit consumer purchasing to stretch their existing supplies including limiting or ending promotional activity, placing limits on units purchased per shopping trip, and holding prices at record or near-record highs — none of which helps to spur demand," the USDA wrote.
If the department's projections are correct, a dozen eggs could cost $2.35 by the fourth quarter.