Record-High Egg Prices Drive Inflation Higher In January

January's inflation data came in hotter-than-expected Wednesday morning with the cost of groceries rising again, due in part to a jump in the price of eggs.

What To Know: The average price of a dozen eggs reached a record-high of $4.95 last month, rising 15.2% and contributing to a 0.5% increase in the cost of food at home.

Charlie Billelo, chief market strategist for Creative Planning, highlighted the 238% jump in the average price of a dozen eggs as the largest 4-year increase in history.

The price of a dozen eggs in the US spiked to a new record high of $4.95 in January. Over the last 4 years, egg prices have increased 238%, the largest 4-year increase in history.https://t.co/rQuXrxVpWs pic.twitter.com/FbGPbHNIBG
— Charlie Bilello (@charliebilello) February 12, 2025

Data from the U.S. Department of Agriculture shows that a record number of more than 20 million egg-laying chickens died in the last quarter due to the H5N1 bird flu. Bill Adams, Chief Economist for Comerica Bank, pointed to the bird flu as the cause of the jump in egg prices.

"The H5N1 bird flu sweeping through the U.S. agriculture industry is forcing farmers to cull infected birds and sending egg prices soaring, a big supply-side shock to food prices. Whole fresh chicken prices rose 1.0% on the month, too," Adams said.

Interestingly, egg producers are reporting record profits as the avian flu spreads while consumers pay higher prices.

Cal-Maine Foods Inc. CALM, the nation’s largest egg producer, reported its most recent quarterly revenue at $954.7 million, well above the $751.49 million consensus estimate.

The USDA predicts egg prices will rise another 45% in 2025 and Polygon POL/USD -based prediction platform Polymarket even has a prediction market on the price of eggs in February. The highest odds are at 25% for the price to be between $5.50 and $5.75 a dozen.

While everyone is complaining about the inflation report, your refrigerator could look like this if you correctly predict how much prices will rise. pic.twitter.com/xTovIBuiDp
— Polymarket (@Polymarket) February 12, 2025