Egg prices expected to rise more than 40 percent in 2025: USDA
Egg prices are at an all-time high and expected to get even worse for consumers, according to a new U.S. Department of Agriculture (USDA) projection.
The USDA's latest outlook predicts egg prices will increase 41 percent in 2025 as a widespread bird flu outbreak continues to devastate egg-laying chicken flocks.
Tuesday's updated forecast is more than double the 20 percent jump in egg prices the agency projected for 2025 a month ago.
The bleak outlook stems from the fact that roughly 18.8 million commercial egg layers were affected by Highly Pathogenic Avian Influenza (HPAI) in January, the highest monthly total since the outbreak began in 2022, the USDA said.
Last month, the average price for a dozen eggs hit a record $4.95, up from $2.52 a year prior. In some places, a carton of eggs can cost $10 or more.
Soaring "egg-flation" has pushed some to take drastic measures, like illegally smuggling eggs into the U.S. from Mexico. Others are turning away from the grocery store, buying backyard chickens that produce eggs on their own.
Major businesses have also taken steps to combat soaring egg prices. Budget-friendly chain Waffle House has added a $0.50 per egg surcharge to all of its menus. Denny's is also adding an egg surcharge at some locations due to rising costs.
Meanwhile, grocers like Costco and Trader Joe’s are limiting the number of cartons customers can buy.
For many Americans, egg sticker shock has served as a reminder that the fight against inflation isn't over.
Consumer prices rose faster than expected in January, and the USDA now expects grocery prices to increase by 3.3 percent in 2025, up from 2.2 percent in last month's projection.
The optimistic view is that egg prices are volatile, meaning prices could come down in a hurry if the bird flu crisis gets under control.
In January 2023, the price for a dozen eggs soared to $4.82 per dozen before falling to $2.22 just six months later in June.
Broiler chickens, which are raised for meat, haven't been hit nearly as hard by bird flu as egg-laying hens, which has kept chicken prices stable for now.
Poultry prices are expected to remain largely unchanged in 2025, according to the USDA.
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