Jamie Spencer
The U.S. Justice Department has launched an investigation into the rising cost of eggs, focusing on whether producers have conspired to hike prices, according to a report by The Wall Street Journal on Friday.
Egg Prices Hit Record Highs
Over the past year, the price of eggs has surged by 50%, with the average cost of a dozen Grade A large eggs reaching $4.95—a staggering 240% increase from $1.46 just five years ago.
Eggs are a dietary staple and an essential source of protein, making their rising prices a growing concern for consumers. The shortage in supplies has fueled public anxiety, with some drawing comparisons to the panic over toilet paper during the COVID-19 pandemic.
Economic Uncertainty and Consumer Reaction
Economists have pointed out that eggs are an inelastic commodity, meaning that demand remains relatively stable despite price increases. According to economist Jason Lusk, a 1% drop in supply can lead to prices rising by as much as 6.67%.
Some investors are now betting on the continued rise in egg prices by purchasing stocks in egg producers such as Cal-Maine Foods (CALM) and Vital Farms (VITL), while others have even resorted to illegal activities. In a high-profile case, 100,000 eggs worth an estimated $40,000 were stolen from a Pennsylvania trailer last month.
Trump’s Tariffs and Economic Concerns
Economic uncertainty has been further compounded by President Donald Trump’s trade policies. Yardeni Research president Ed Yardeni recently warned that “Trump Tariff Turmoil 2.0” could trigger a market downturn.
In an interview with Fox News, Trump declined to rule out a recession related to his tariff policies, stating, “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.”
Impact on Consumer Budgets
Egg prices have a widespread economic impact beyond the grocery store. They are a key ingredient in many products, from waffles, cakes, and pancakes to ramen and omelets. As egg prices rise, so do the costs of these everyday food items.
Retailers such as Costco and Whole Foods have imposed limits on how many eggs customers can buy, while Kroger reported a 70% increase in egg prices in the fourth quarter.
Government Response and Avian Flu Concerns
Last month, the Trump administration announced a $1 billion plan to combat avian influenza, which has been cited as a key factor in egg shortages. Millions of birds have been euthanized due to the disease, contributing to supply constraints.
Despite this, questions remain about whether egg producers and retailers are taking advantage of the crisis to raise prices artificially. The United Egg Producers trade group maintains that farmers are doing their best to contain the outbreak.
The Psychological Impact of Egg Shortages
Egg prices have become a symbol of economic anxiety in the U.S., with some likening their scarcity to supply chain disruptions seen with baby formula in 2022.
Economist Paul Harrison notes that shortages of staple goods serve as a “heuristic” that shapes public perception, reinforcing fears about inflation, the economy, and supply chain vulnerabilities.
Looking Ahead
With Easter approaching, egg prices are expected to remain high. The U.S. Department of Agriculture recently projected that egg prices will increase by 20% this year.
For now, eggs remain a critical part of the American diet, with the average American consuming 280 eggs per year. As discussions over inflation, economic stability, and consumer affordability continue, eggs have emerged as an unlikely but powerful indicator of broader economic challenges.
