Breakfast Staples Hit by Inflation

Increased prices of breakfast essentials like eggs, orange juice, and coffee are affecting consumers. According to the Bureau of Labor Statistics, egg costs have surged 53% year-over-year in January, with a 7.2% monthly increase. Grocery inflation overall has climbed 1.9% compared to last year.

Egg Prices Soar Due to Bird Flu

The highly pathogenic avian influenza (HPAI), also known as bird flu, is the primary factor behind the spike in egg prices. Infections have reduced hen numbers and egg production, leading to a shortage. The USDA reports a 3% decrease in egg production in December compared to the previous year. Egg prices are projected to rise by 20.3% in 2025, potentially reaching a 45.3% increase.

National Grocers Respond to Egg Shortages

National grocers like Costco and Trader Joe's have implemented purchase limits amid shortages. Trader Joe's has set a one-dozen-per-customer-per-day rule in all stores. Restaurants, such as Waffle House, have added a $0.50 surcharge per egg to offset the rising egg costs.

Orange Juice Production Impacted by Hurricanes and Disease

Agricultural commodities, including orange juice, are facing elevated prices. Hurricanes Helene and Milton, along with citrus greening disease, have affected orange juice production in Florida. Brazil, the largest orange juice producer, has also experienced production impacts due to El Niño weather patterns.

Coffee Prices Spike on Global Supply Concerns

Coffee futures have seen a significant surge in the past two weeks, with prices nearly exceeding $4.30 per pound. Unfavorable weather conditions in South and Central America, coupled with macroeconomic factors, have strained exporters and importers. The impacts of El Niño on coffee crops in Brazil, Colombia, and Vietnam have reduced global coffee supplies.

Companies Raise Prices to Offset Coffee Costs

J.M. Smucker and Keurig Dr Pepper are expected to increase prices to cover higher coffee expenses. Bank of America notes that Keurig premium pods are already at record highs, while the price of drip coffee per cup has risen to $0.18. Companies continue to monitor the volatile coffee market and adjust their strategies accordingly.