Why the Price of Eggs Means More Than You Think
If you’ve noticed rising egg prices making headlines again, you’re not alone. In this Q&A, we break down why egg prices matter, what’s behind the recent increase, and how it impacts both consumers and businesses. The LPL Financial Research team offers insight into these questions.
Q: Why do we always hear about eggs in news stories about inflation?
A: Eggs are a staple in most households, making them a relatable way to illustrate the impact of inflation. Because many people buy eggs, price changes affect a large portion of the population, especially lower-income households. The U.S. Bureau of Labor Statistics even tracks egg prices as part of the Consumer Price Index (CPI), which measures inflation.
A: Eggs are a staple in most households, making them a relatable way to illustrate the impact of inflation. Because many people buy eggs, price changes affect a large portion of the population, especially lower-income households. The U.S. Bureau of Labor Statistics even tracks egg prices as part of the Consumer Price Index (CPI), which measures inflation.
Q: If eggs only cost around $4, why is a 15% price increase such a big deal?
A: While a jump from $4 to $4.60 may not seem like much on a weekly grocery bill, it’s often a signal of larger economic trends. Feed costs, energy prices, labor shortages, and supply chain disruptions all impact the price of eggs. These factors can also drive up costs for other goods.
A: While a jump from $4 to $4.60 may not seem like much on a weekly grocery bill, it’s often a signal of larger economic trends. Feed costs, energy prices, labor shortages, and supply chain disruptions all impact the price of eggs. These factors can also drive up costs for other goods.
Q: What’s behind the recent spike in egg prices?
A: The primary driver is bird flu, which has disrupted egg production and reduced supply. This supply shock has led to a 15.2% price increase in January — the largest in a decade — pushing annual egg prices up 53% according to the CPI.
A: The primary driver is bird flu, which has disrupted egg production and reduced supply. This supply shock has led to a 15.2% price increase in January — the largest in a decade — pushing annual egg prices up 53% according to the CPI.
Q: How does this affect businesses?
A: Restaurants, bakeries, and food manufacturers that rely heavily on eggs are hit hard by these increases. Even small price hikes can lead to higher costs, which may force businesses to eventually pass those costs on to consumers.
A: Restaurants, bakeries, and food manufacturers that rely heavily on eggs are hit hard by these increases. Even small price hikes can lead to higher costs, which may force businesses to eventually pass those costs on to consumers.
Q: Should I be concerned about food inflation overall?
A: While overall inflation remains relatively stable at 3%, food prices remain volatile. Keeping an eye on staple items like eggs can help consumers and businesses anticipate broader cost trends in their budgets.
A: While overall inflation remains relatively stable at 3%, food prices remain volatile. Keeping an eye on staple items like eggs can help consumers and businesses anticipate broader cost trends in their budgets.
Sources : LPL Research Team
