Why Eggs Cost More This Year: A Simple Look at Supply, Demand, and Your Wallet
If you’ve been to the grocery store lately, you may have noticed something odd—eggs are way more expensive than they used to be. A dozen eggs that used to cost $2 now cost $4 or more. But why? The answer is all about economics—and it’s actually pretty simple.
It Starts with Supply and Demand
Economics 101 teaches us that prices rise when demand goes up or supply goes down. With eggs, both happened.
In early 2024, a bird flu outbreak wiped out millions of egg-laying hens in the U.S. This caused a drop in supply—fewer hens = fewer eggs. At the same time, demand stayed the same (or even increased, thanks to new fitness and food trends pushing high-protein diets). The result? Prices went up.
The Bigger Picture: How One Industry Affects Another
It’s not just chickens. When feed prices go up—like corn or soy—it costs more to raise animals. If diesel fuel gets expensive, it costs more to deliver eggs to stores. That’s called cost-push inflation: when it costs more to make and move stuff, those costs “push” prices higher.
Even the packaging plays a role. Cardboard and plastic prices have jumped in recent years, so the cartons themselves cost more too.
The Psychology of Pricing
Here’s where it gets interesting: sometimes prices stay high even after supply rebounds. Why? Because businesses know people expect to pay more. That’s called price anchoring. Once we get used to seeing $4 eggs, $3 starts to feel like a bargain—even if it used to feel expensive.
What Can Be Done?
The Federal Reserve tries to keep inflation in check by raising or lowering interest rates. When borrowing money becomes more expensive, people spend less. That slows demand and (ideally) brings prices down. But it doesn’t happen overnight.
For now, the best advice is to shop smart: check unit prices, look for store brands, and if you really want to save—maybe start raising your own chickens.
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