Grocery prices rose in April, egg prices up almost 50%

Grocery prices rose again in April, up 2.8% from a year ago and up 0.2% from March, according to the Consumer Price Index posted Tuesday (May 13) by the U.S. Bureau of Labor Statistics (BLS). Overall food prices are up in six of the last seven months.

The BLS reports that the index for food eaten at home rose 2% over the past 12 months, led by meats and poultry, up 7% over the past year. Retail egg prices increased 49.3% year over year. Retail beef prices are expected to remain high given the short supply of live cattle, which has driven up prices for packers like Tyson Foods and Cargill.

Egg prices are high because of bird flu outbreaks that reduced the number of laying hens over the past six months. Egg prices dipped in April, but remain near record highs. The U.S. Department of Justice is investigating CalMaine Foods, which supplies 20% of the nation’s eggs, for price gouging. While the company said it was hit hard by bird flu losses, the company tripled its net income to $508.5 million in the recent quarter ending March 1. Cal-Maine said it is cooperating with the DOJ investigation.

Non-alcoholic beverage prices sold at retail also increased 3.2% over the same period a year ago. Pepsi and Coca-Cola raised soda prices in 2024, but have more recently funded price promotions with retailers.

BLS reports retail dairy prices rose 1.6% over the past year, and cereals and bakery goods were unchanged. Fruit and vegetable prices decreased 0.9% in April over the same period last year.

Restaurant prices rose 3.9% over the year ago. For full-service restaurants, meal prices were up 4.3% year over year. Limited-service meal prices are up 3.4% from April a year ago.

There is little hope for meat prices to soon decline given the lower production estimates released this week by the U.S. Department of Agriculture (USDA). The May World Agricultural Supply and Demand Estimates from May 12 forecast beef production will decline 2.1% this year.

Pork production is forecast to increase 0.7%, slightly below the 1% forecast made in April. Broiler chicken production is expected to increase 1.1% this year, down from the 1.7% forecast made in April. Turkey production will be down 5.1%, while egg production is forecast to be 2.5% lower for the year. Milk production is expected to increase 0.6% for the year.

The USDA is bullish on U.S. corn production, which is estimated at 15.82 million bushels, and U.S. soybean production is forecast as 4.34 million bushels. The USDA also reports commodity wholesale egg prices were up 121.5% this week compared to a year ago. Commodity coffee prices were up 96.9%, and boneless chicken breast meat prices were up 53.9% from a year ago this week. Commodity foodstuff wholesale prices that decreased this week from a year ago include wheat (down 22.7%), sugar (down 7.5%), and chicken wings (down 48%).