Advertisement
Advertisement

The biggest contributor to high prices was avian flu affecting chickens in different parts of the world, including the US, Japan, and France, forcing farmers to cull chickens at a large scale, which reduced supply and drove up the price of eggs. In the US alone, avian flu infected about 10% of the country’s egg laying hens last year.

Outside of the flu, the same things driving up food prices everywhere—like supply chain challenges—also contributed to the price of eggs, such as higher feed costs due to the Russia-Ukraine conflict. Chicken feed can account for up to 50% of the expenses related to the production of an egg, according to one economist who focuses on food and agriculture.

Advertisement

Transportation and labor costs also rose, pushing up egg prices. But, transportation costs are now declining, and labor costs show signs of easing, helping to explain lower grocery prices overall.

Advertisement



What do lower food prices mean for consumers?

What goes up, must come down. Economists say that food prices can quickly rise, but that it takes time for lower prices to make their way to retailers. The easing of egg prices is a good sign for consumers.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.