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Fans of cheaper eggs, rejoice!
The price index for eggs dropped 13.8% between April and May, according to the U.S. Bureau of Labor Statistics' consumer price index report, released Tuesday. That’s the sharpest decline in the egg index since January 1951. On an annual basis, the price of eggs fell 0.4%.
This is a welcome shift for consumers, who have watched egg prices skyrocket in recent months, largely because of a hit to supply from the largest bird flu outbreak in U.S. history. Egg prices peaked in January 2023, reaching a whopping $4.82 per dozen, according to the average price figures from the BLS. Since January, prices have steadily declined each month. Today’s CPI data shows that in May, a dozen eggs cost an average of $2.67 — the lowest price since April 2022, when it was $2.52.
And egg prices should continue to decline. Wholesale egg prices are projected to fall 26.8% in 2023, Seth Meyer, the U.S. Department of Agriculture’s chief economist, said in February at the USDA Agricultural Outlook Forum.
Eggs aren’t the only thing getting cheaper. Tuesday’s CPI report shows that inflation is continuing to cool. The consumer price index for all items, a proxy for inflation, increased 4% in the past 12 months. That’s the lowest year-over-year increase in two years.
Taming inflation has been top of mind, to say the least, for the Federal Reserve. Wednesday, the Fed is set to announce whether it will keep the level of the federal funds rate where it is — between 5% and 5.25% — or increase it for the 11th consecutive time in an effort to cool inflation.