Bird flu and ongoing inflation concerns cause egg prices to rise in the US

(MENAFN) In the United States, egg prices have risen for the third consecutive month since July, attracting considerable attention amid general inflation concerns. The Consumer Price Index (CPI) shows that egg prices rose 19.1 percent in July compared to the same period last year, in stark contrast to the overall CPI, which recorded only a modest increase of 2.9 percent during the same period. This significant increase in egg prices, a staple in American households, has heightened concerns among consumers, especially as they grapple with rising costs across various sectors.

The recent increase in egg prices appears to be closely linked to the ongoing issues with avian flu, which is affecting the poultry supply. The avian flu outbreak, which had a significant impact in 2022, has increased again in late 2023, particularly affecting states such as Colorado and California. Market research analyst Caitlin Hubbell of Purdue University's Center for Food Demand Analysis and Sustainability suggests that the high prices are likely due to this ongoing avian flu problem, which has limited supply and led to a sharp 8 percent month-over-month increase in egg prices in April, the largest monthly increase since spring 2023.

Eggs are considered an “inelastic” good, meaning that demand for them remains relatively stable even when prices increase. Consumers tend to buy a consistent amount of eggs regardless of price fluctuations and generally do not hoard eggs when prices are low. This property amplifies the impact of supply disruptions, such as those caused by bird flu outbreaks, and leads to more significant price changes in grocery stores. As a result, the combination of persistent inflation and supply problems has made egg prices a central issue in discussions about food affordability and inflation.

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