On the eve of Thanksgiving, a tale of two grocery stores unfolded across the American landscape. In one, the shelves stood bare, devoid of the eggs that are a staple in the feasts of celebration. In another, an hour and a half north in Richfield, eggs could be found, but they came with a price tag swollen by 40%, a stark reminder of the economic winds that have been blowing through the nation.
In November, a silent shockwave rippled through the economy as egg prices surged by 8.2%, one of the most dramatic monthly spikes in the past two decades. This was not an isolated tremor; it was part of a broader seismic shift in the cost of living, with beef, coffee, and non-alcoholic beverages joining the chorus of rising prices. The overall grocery prices experienced their largest monthly gain since January 2023, a stark escalation that has left many Americans feeling the pinch.
Yet, as the cost of a dozen eggs climbed, economists urged a steady hand, suggesting that these price spikes, while jarring, were isolated incidents rather than harbingers of a systemic reacceleration of inflation. The "egg-flation" and its counterparts in the meat and beverage aisles are symptoms of a confluence of factors, from avian flu to climate change, each playing a part in the intricate dance of supply and demand.
The bird flu outbreak has decimated flocks, reducing the supply of eggs just as the holiday season, with its increased baking, cooking, and dining out, drives up demand. The USDA has revised down its estimates for the US egg supply and raised price forecasts for 2025, painting a picture of a market under strain.
Beef prices have been on the rise as well, with the US cattle inventory at its lowest level in over 70 years. Drought and other rising costs have taken a toll, and the contraction is expected to continue through 2025, with the prospect of herd expansion not expected until 2026 or 2027.
Orange juice, both frozen and fresh, has seen its prices climb due to hurricanes, bad weather, and a citrus disease. The situation is further complicated by Brazil's worst harvest in decades, caused by flooding, drought, and citrus greening disease, which supplies about 30% of America’s imported OJ.
Coffee, too, has not been spared. Weather events that have impacted Brazil’s citrus production have also affected the second-most consumed beverage in the US. Arabica coffee beans, which make up the majority of global coffee bean production, have reached record highs, with the future Looking ahead to being cloudy for coffee lovers
Chocolate, derived from cocoa, has seen a 108.7% increase in wholesale manufacturing costs annually. Adverse weather events in West Africa, responsible for over 70% of global cocoa supply, have slammed the industry, leading to shrinking product sizes, modified recipes, and a heavier reliance on non-chocolate offerings.
These price increases, while seemingly outliers, add another layer of costs to products that have become significantly more expensive since before the pandemic. The once-in-a-generation bout of high inflation, caused by a confluence of factors that emerged because of the pandemic, war in Ukraine, and other events, weighed heavily on Americans and ultimately propelled former President Donald Trump back to the White House.
Food prices have long been subject to fluctuations as the result of weather events, crop yields, disease, war, supply chain snarls, spikes in demand, or other temporary disruptions. And that’s what’s happening here with eggs, beef, coffee, and orange juice.
The annual rate of grocery price inflation is the highest since this time last year; however, it’s a far cry from 2022 when it averaged 11.4% and peaked at 13.5%, well above overall inflation’s peak of 9.1%. That breakneck pace resulted in grocery prices being 27% higher now than they were in February 2020, before the onset of the pandemic in the US.
Economists and food industry experts say it’s not that easy to avoid rising food prices, so consumers and businesses alike have been forced to adapt. “I think we’ll continue to see that consumers are looking to stretch that food dollar any way they can, not just because of the price of food, but also because it seems like the price of everything is going up,” said Billy Roberts, senior analyst for food and beverage at CoBank.
For businesses like Vidlak’s Brookside Cafe in Omaha, Nebraska, the rising costs of critical ingredients have meant getting creative. Founder Roger Vidlak has turned to cage-free eggs and liquid egg mixes, which have been less impacted by the avian flu and are considerably cheaper. “I haven’t raised my prices for, oh, probably six months,” he said. “I just kind of absorb it.”
In this new era of inflation, where the prices of everyday goods seem to dance to the beat of a drum that grows louder with each passing month, Americans are faced with the reality that the best one can hope for is stabilization in prices. The days of prices falling significantly and reverting to pre-pandemic levels are unlikely, a fact that has forced consumers and businesses to find new ways to navigate the changing economic landscape. It is a time of adaptation, of creativity, and of resilience, as the American spirit strives to endure in the face of economic uncertainty.
By Joshua Howard/Dec 16, 2024
By Joshua Howard/Dec 16, 2024
By Michael Brown/Dec 16, 2024
By Michael Brown/Dec 16, 2024
By Jessica Lee/Dec 16, 2024
By Jessica Lee/Dec 16, 2024
By Laura Wilson/Dec 16, 2024
By Laura Wilson/Dec 16, 2024
By Olivia Reed/Dec 16, 2024
By Olivia Reed/Dec 16, 2024
By Sarah Davis/Dec 16, 2024
By Sarah Davis/Dec 16, 2024
By Emily Johnson/Dec 16, 2024
By Emily Johnson/Dec 16, 2024
By Olivia Reed/Dec 16, 2024
By Olivia Reed/Dec 16, 2024
By Michael Brown/Dec 16, 2024
By Michael Brown/Dec 16, 2024
By Eric Ward/Dec 16, 2024
By Eric Ward/Dec 16, 2024
By Thomas Roberts/Dec 11, 2024
By Thomas Roberts/Dec 11, 2024
By Daniel Scott/Dec 11, 2024
By Daniel Scott/Dec 11, 2024
By Samuel Cooper/Dec 11, 2024
By Samuel Cooper/Dec 11, 2024
By Grace Cox/Dec 11, 2024
By Grace Cox/Dec 11, 2024
By Sophia Lewis/Dec 11, 2024
By Sophia Lewis/Dec 11, 2024
By Megan Clark/Dec 11, 2024
By Megan Clark/Dec 11, 2024
By Joshua Howard/Dec 11, 2024
By Joshua Howard/Dec 11, 2024
By Eric Ward/Dec 11, 2024
By Eric Ward/Dec 11, 2024
By Olivia Reed/Dec 11, 2024
By Olivia Reed/Dec 11, 2024
By Emily Johnson/Dec 11, 2024
By Emily Johnson/Dec 11, 2024
By Ryan Martin/Dec 4, 2024
By John Smith/Dec 4, 2024
By Laura Wilson/Dec 2, 2024
By Natalie Campbell/Dec 2, 2024
By Thomas Roberts/Dec 2, 2024
By James Moore/Dec 2, 2024
By Rebecca Stewart/Dec 2, 2024
By Laura Wilson/Dec 2, 2024
By William Miller/Dec 2, 2024
By Christopher Harris/Dec 2, 2024
By George Bailey/Dec 2, 2024
By William Miller/Dec 2, 2024
By William Miller/Nov 27, 2024
By Noah Bell/Nov 27, 2024
By Joshua Howard/Nov 27, 2024
By Natalie Campbell/Nov 27, 2024
By George Bailey/Nov 27, 2024
By Michael Brown/Nov 27, 2024
By John Smith/Nov 27, 2024
By Victoria Gonzalez/Nov 27, 2024