As Thanksgiving approached, shoppers in Rochester, Minnesota, were met with empty shelves where eggs once stood. Just 90 minutes away in Richfield, eggs were available—but at a steep cost, 40% higher than four months ago.
Nationwide, grocery prices are climbing again, with November marking an 8.2% spike in egg prices—the highest monthly jump in two decades, according to Consumer Price Index (CPI) data. Beef, coffee, and orange juice have also seen significant increases, pushing overall grocery costs to their largest monthly gain since January 2023. Experts say the price hikes reflect specific disruptions rather than a broader inflationary trend, but for consumers already weary from years of rising costs, the increases hit hard.
Why Are Food Prices Rising?
Economic experts suggest several factors are driving the spikes, often tied to isolated events:
- Eggs (+37.5% annually): A bird flu outbreak has decimated flocks, reducing supply as demand peaks during the holiday baking season. Wholesale prices soared by 55% in November alone.
- Beef (+5% annually): U.S. cattle inventory has reached a 70-year low, with drought and rising costs curbing production. Industry experts don’t expect herd expansion to begin until 2026 or later.
- Orange Juice (+17.2% for frozen juices): Hurricanes and citrus diseases have devastated U.S. crops, while Brazil, which supplies 30% of America’s imported orange juice, recorded its worst harvest in decades due to flooding and drought.
- Coffee (+1.9% annually): Climate-related challenges in Brazil, the largest coffee exporter, have caused Arabica bean prices to hit record highs. Experts predict worsening weather patterns will continue to impact coffee production.
- Chocolate (+108.7% in wholesale cocoa costs): West Africa, responsible for 70% of global cocoa supply, has faced extreme weather and declining yields, forcing manufacturers to raise prices and reduce product sizes.