Egg Prices Up 10.4 Percent; Relief May Be Coming

The price of eggs rose by 10.4% in February, driving the prices for meats, poultry, fish and eggs up by 1.6%, but there are indications that there may be some relief coming, according to the U.S. Department of Agriculture.

Food prices overall went up by 0.2% for the month, after rising 0.4% in January, the latest consumer price index, released by the U.S. Department of Labor's Bureau of Labor Statistics Wednesday, shows.

But weakening demand driven by the climbing prices has allowed supplies of eggs to start catching up, according to the USDA, and Brian Moscogiuri, a vice president at supplier Eggs Unlimited, told Bloomberg that egg prices are starting to "erode very rapidly."

"We're seeing the consumers start to push back on some of those higher prices that they're seeing. It seems demand has fallen off sharply," Moscogiuri said.

Egg prices as of March 7 averaged $6.85 a dozen, dropping 16% from a record $8.15 a dozen two weeks earlier, the USDA reported.

However, over the past year, egg prices skyrocketed by 58.8%, reports the consumer price index.

Supplies have been tightened because of the ongoing bird flu outbreak, leading to record prices, store shelves being emptied and grocers limiting egg purchases.

The Trump administration has promised to bring down food prices, recently announcing a plan to help fight bird flu and boost imports of eggs.

Agriculture Sec. Brooke Rollins said Tuesday the plans are working, and prices are dropping.

The USDA also reports that there have been no significant bird flu outbreaks, allowing production to climb.

The agency added that retailers are curbing advertising, as they don't want to encourage egg buying and jeopardize supplies.

Moscogiuri said that the Easter season may also bring some of the cheapest prices on eggs in months, adding that "we could have a decent demand recovery."

The consumer price index showed that food prices were largely unchanged between January and February, with declining prices in four of the six major grocery store food group indexes being offset by increases in two categories.

In addition to eggs, beef prices went up by 2.4% in February, driving the index for meat, poultry, fish and eggs up by 2.4%.

The index for cereals and bakery products also rose by 0.4% in February after falling by the same amount in January.

Declines were marked in the index for other food at home, down 0.5% for the month. The indexes for fruits and vegetables, as well as alcoholic beverages, dropped by 0.5%.

The index for dairy and related products dropped by 1% for February.

There were also rising prices in categories for food away from home by 0.4% and for full-service meals, also by 0.4%.

Changes in other prices for the past 12 months include:

• Food at home: Up 1.9%
• Meats, poultry, fish and eggs: Up 7.7%, with the index for eggs at 58.8%
• Nonalcoholic beverages: Up 2.1%
• Dairy and related products: Up 0.8%
• Cereals and bakery products: Up 0.3%
• Other food at home: Up 0.1% over the year
• Fruits and vegetables: Down 0.2% over the same period
• Food away from home: Up 3.7%
• Full-service meals: Up 3.7%
• Limited service meals: Up 3.5%

Groceries aren't the only thing that got more expensive in February, the report shows, with price increases reported for the following:

• Men's suits, sport coats and outerwear: 5.5%
• Girls' apparel: 3.6%
• Jewelry and watches: 3.6%
• Laundry equipment: 3.3%
• Computer software and accessories: 3.3%
• Dishes and flatware: 2.8%
• Utility gas service: 2.5%
• Women's dresses: 2.5%

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