Why are eggs so expensive? New report breaks down grocery price increases

CHICAGO (WLS) -- Consumers keep getting sticker shock at the grocery store.

According to the Bureau of Labor Statistics, grocery prices nationwide are up by 6.4% compared to this time in 2022. In the Chicago area, prices are up by 5.4%.

When you break down specific items like paper products, butter and eggs, the numbers are not pretty and shoppers are not happy.

The Consumer Price Index released this week tells a story that many consumers already feel: prices for most items have skyrocketed. And the product that rose the most in the las year is eggs.

For many, including Larry Greer, grocery shopping is no longer about what you want but what you need.

"The prices are horrible. I used to be able to feed my family for $500 flat for the month. But now it's like $700 to $800 a month," he said.

The Flossmoor resident not only shops for residents but also for complete strangers as an Instacart shopper, so he's spent plenty of time looking at prices. All he can do is shake your head.

"What else can you do?" he said. "Go to work harder and shop smarter."

"You pay so much and you get so little!" agreed Hedy Keiderling of Lincoln Park. "Every time I go, it's a good $20 more. Like paper products in particular. Those basic needs, that's what's really hard because you need them."

According to the Bureau of Labor Statistics, the price of eggs is up a whopping 70% compared to last year, margarine is up by 45%, butter is up by 26%, flour is up by 20 and lettuce is up by 17%.

Phil Lempert, also known as the Supermarket Guru, has been studying consumer prices and market trends for more than a quarter century. He said the price increases aren't over, and there are three main reasons driving them.

"One is climate change. Because of all of the fires in the northwest, because of the droughts, because of the flooding, that's effected our crops," he said. "Number two is transportation. Transportation costs are through the roof. A part of it is about fuel."

"And third is labor," Lempert explained. "Labor prices are going up. What the pandemic did, is it got a lot of people to quit those low paying jobs and that's why we've got this shortage of labor."

And then there's the question everyone is asking: Why are eggs so expensive right now?

"Number one is bird flu, no question; it's claimed about 58 million hens," Lempert said. "And it doesn't look like it's going away because the FDA says we could have more bird flu outbreaks coming up."

So what can you do as a consumer?

Lempert suggests checking out organic eggs because in many organic may actually be cheaper. Also try to avoid wasting food; take inventory of what's in your fridge and cabinets, and take a shopping list to the store. Finally, don't turn your nose up at store brands - they can save you a lot of money.

Store brands typically cost 20% to 40% less than the name brands. All you've got to do is look at the ingredients and compare the nutritional information. If they're identical, go ahead and give the store brand a try. If you're not satisfied, the store will usually give you your money back.

The Chicago area also isn't faring as bad as the rest of the country in terms of grocery prices. Experts say because there's so much competition in our area, and because we're in the middle of the country, transportation costs tend to be much lower.