Egg prices explode: Trump cheers, consumers pay!
Egg prices rise due to bird flu and tariffs while Trump makes contradictory statements. What's behind it?
Egg prices explode: Trump cheers, consumers pay!
On April 20, 2025, the traditional “Egg Roll” will take place on the South Lawn of the White House. US President Donald Trump will watch children race with Easter eggs and shake the paw of a bunny performer. In his public statements, Trump has often emphasized that egg prices have fallen sharply since he took office in January. In reality, however, consumers report huge prices and empty shelves in stores. While Trump claims eggs have become 79 percent cheaper, this contradicts surveys showing that prices have actually risen to a record high. According to the Consumer Price Index, the price of a dozen eggs reached an impressive $6.23 in March.
The main reason for this increase is the devastating impact of bird flu, which has led to the deaths of over 19 million birds in the first three months of the year. In total, almost 170 million animals have been killed since the outbreaks began. Agriculture Minister Brooke Rollins has advised citizens to keep chickens to promote self-sufficiency. In an unusual twist, some, particularly the so-called Tradwives, recommend dyed potatoes as a cost-effective alternative to eggs.
Inflation and market reactions
The uncertainty on the egg market is also reflected in the past inflation figures. In January 2025, U.S. inflation was 3 percent, and food prices, particularly eggs, contributed significantly to this increase. The consumer price index rose 0.5 percent compared to the previous month - the largest increase since August 2023. Egg prices are expected to increase by about 53 percent in 2025 compared to the previous year, which is the largest increase in a decade. Around two-thirds of the increase in food inflation can be attributed to egg prices. Experts fear that uncertainties stemming from Trump's tariffs could also dampen hopes that the Federal Reserve will cut interest rates.
The market reaction was negative, with 10-year US Treasury yields rising 10 basis points. While President Trump has called for rate cuts, the decision remains with the Federal Reserve. Economists and the central bank are also warning that prices will continue to rise, which is further fueling consumer concerns.
Slow return to normality
Laying hen farms are working hard to restart production. But the return to normal egg production is slower than expected. However, while wholesale egg prices are gradually falling, these discounts are not currently reaching consumers. Jada Thompson, an agricultural economist at the University of Arkansas, said grocery stores aren't immediately passing on lower prices to customers. The current egg crisis is a complex issue that links consumer concerns and market developments.
Overall, it is clear that the high demand for eggs and the associated price increases pose challenges for many consumers in the USA. While discussions about sowing times and market prices continue, it remains uncertain when the desired normalization on the egg market can be achieved.