Egg prices shot up 15% in January as retailers limit customer purchases

In January alone, the cost of eggs around the U.S. jumped more than 15% from a year ago, to roughly $4.95 a dozen. That's five times the overall U.S. inflation rate of 3%, Consumer Price Index data showed on Wednesday. In 2019, consumers could pick up a dozen eggs for around $1.54, but by last year the price had soared to $4.15 — a 170% increase, according to CBS News' price tracker of everyday goods. 

The spike in egg prices last month underscores the devastating impact of avian flu, which killed more than 40 million egg-laying birds last year. Including ducks and chickens, 148 million birds have been ordered euthanized since the current strain of bird flu, H5N1, began spreading around the U.S. in 2022.

If there's any good news, it's that egg prices are at least expected to rise more slowly over the course of the year. The January surge "is likely a one-off," said EY Chief Economist Gregory Daco. But that may come as small consolation for the millions of consumers who continue to grapple with higher food costs both at home and in restaurants due to record-high egg prices.

Why are egg prices so high?

The price spike in eggs is largely driven by the bird flu, which continues to hit farms and wipe out flocks. When demand remains steady for a product that isn't easily substituted and supply diminishes, prices tend to rise. 

"If you don't have a bird you don't have an egg," Sharon Linsenbardt, founder and owner of Barn Buddies Rescue and Sanctuary in Las Vegas, told CBS News reporter Andres Gutierrez. The millions of egg-laying hens killed by avian influenza can't be replaced easily and quickly, added Linsenhardt, who has limited sales to two dozen eggs a family.

"High egg prices are due to the avian flu issue, which cuts the supply in the available eggs for sale," Columbia Business School professor Yiming Ma told CBS MoneyWatch. "If you have less supply, that drives up the prices."

Egg supplies are likely to remain constrained as long as bird flu outbreaks continue, according to David Anderson, an agricultural economics professor at Texas A&M University. 

Anderson, noting a cultural shift that may be exacerbating the problem, also said he has noticed that Americans are leaning toward more protein-heavy diets, driving demand for eggs. 

"We have this nutritional trend, and as people incorporate more protein in their diets, that increases overall egg demand and sets a higher base for demand," he said. "Then when we get this supply shock, low and behold, we get higher prices."  

Retailers rationing eggs

Ongoing egg shortages and rising prices recently prompted 24-hour breakfast chain Waffle House to add a 50 cent surcharge per egg, while some major grocery chains are imposing limits on how many eggs shoppers can buy at a time.

Walmart is curtailing purchases of 60-count cartons to two per purchase "to ensure more customers can have access to eggs," a spokesperson for the retailer said. 

"Although supply is very tight, we're working with suppliers to try and help meet customer demand, while striving to keep prices as low as possible," the spokesperson added. At Sam's Club, a division of Walmart, the warehouse club is limiting the number of egg purchases to two per item at its nearly 600 stores across the U.S.

As of Wednesday, most of Target's nearly 2,000 U.S. stores had eggs in stock, and the retailer only has purchase limits in place in its Hawaii stores, according to a spokesperson for the retailer. "We'll continue to monitor and adjust as needed," they added.

Kroger, which operates about 2,700 U.S. grocery stores, hasn't imposed a company-wide cap on egg purchases, though some stores are limiting customers to buying two dozen per visit.

Giant Eagle said it was selling conventional shelled eggs "at or below our cost across all our supermarkets" to limit the impact of rising egg prices on its customers. The regional grocery, which operates more than 470 stores in Indiana, Maryland, Ohio, Pennsylvania and West Virginia, is encouraging shoppers to limit their purchase to a maximum of three egg cartons per visit. 

Amazon-owned Whole Foods and Costco did not respond to requests for comment.

When will egg prices drop?

Egg prices are expected to rise a total of 20% in 2025, according to the U.S. Department of Agriculture. Despite the rising costs, consumer demand remains firm and could even increase as Easter approaches, offering little hope for respite on prices.

Two things have to happen for prices to ease, according to experts. The U.S. must contain the bird flu, and older chickens that are past their productive primes, as well as diseased chickens, have to be replaced. Exactly how long all of this will take is uncertain. 

"it's not clear that we've fully controlled the spread of bird flu. That's the first step, and it'll be a few months after that before you can breed and replace the laying population," Bryan Spillane, Bank of America senior food and beverage analyst, told CBS MoneyWatch.

He expects it will be at least another three to six months before prices moderate. If restaurants continue to implement surcharges for eggs, that could eventually put a damper on demand. 

In the near-term, Anderson expects eggs to continue hitting consumers' wallets. "I wouldn't be surprised to see prices continue to go up, because we continue to have outbreaks," he said. 

Cost-conscious consumers can comparison shop among grocery stores, noted NerdWallet spokesperson Sara Rathner, but be aware that if price differences aren't substantial, you could eat up any cost savings on gas. 

Other ways to save on eggs include using store circulars, or buying them with a cash-back credit card. "Then you're combining multiple ways to reduce your bill," she said.