Egg prices are once again on the rise, drawing attention as households grapple with the ongoing concerns of inflation and high costs. July marked the third consecutive month of year-over-year price increases, reversing a trend of previous declines. This surge is largely attributed to the persistent impact of the highly pathogenic avian influenza (HPAI), commonly known as bird flu.

According to the latest Consumer Price Index (CPI) data, egg prices jumped by 19.1% in July compared to the same month last year, far outpacing the overall CPI increase of 2.9% during the same period. The bird flu has been a major driver of this inflationary pressure, particularly due to its resurgence in states like Colorado and California, which has significantly impacted egg supplies.

Eggs, a staple in many households, have seen fluctuating prices throughout the pandemic. Consumers have been particularly sensitive to these changes, as grocery prices overall have been a major concern, influencing consumer sentiment negatively in recent years.

The most recent surge in egg prices can be traced back to a nearly 8% increase between March and April, reflecting seasonal patterns in bird flu outbreaks. This was the largest month-over-month price hike since spring 2023.

Market analyst Caitlinn Hubbell from Purdue University’s Center for Food Demand Analysis and Sustainability highlights that avian influenza continues to be a significant factor. The virus had a major outbreak in 2022 and saw a resurgence toward the end of 2023, contributing to ongoing supply challenges.

Despite rising prices, egg demand remains relatively stable. Hubbell points out that eggs are considered an “inelastic” product, meaning consumers tend to purchase them in consistent quantities regardless of price fluctuations. However, when prices drop, consumers typically do not increase their purchasing volume.

As egg prices continue to climb, consumers remain focused on managing their grocery budgets amidst broader economic concerns.