Egg prices fall, but grocery shoppers face uncertainty

Soaring prices have changed shopper expectations, and many people are starting to achieve peace at higher costs, barely. Market research firm Nemerator reported last month that the average price of consumers said they were paying $5.56 for twelve eggs, up sharply from $4.90 in January.

"This increased willingness to pay over the past few months suggests that consumers are accustomed to conscious or subconscious egg prices rising," the researchers said.

It’s not just eggs: Many shoppers are working hard to pay more for groceries as they shift the focus to covering essentials.

Many people are now planning to trim their spending into all sorts this summer, according to a survey released by consulting firm KPMG in late April. Grocery is one of two categories that shoppers say they expect to spend more.

“Tariffs have shifted from background noise to consumer frontiers and grocery receipts,” KPMG’s head of consumer and retail tax, Heather Rice, said in a statement. “Shoppers are more sensitive than ever, and many shoppers link up the rising costs directly to tariffs.”

Recently, consumer sentiment has recently reached a 12-year low in a closely watched conference committee survey as more households expect inflation to climb this year. In March, consumer prices rose to 2.4% annually, down from 2.8% last month, but that was before President Donald Trump significantly expanded his global trade war in April.

Many shoppers have already raced to buy foreign-made goods, including large purchases such as cars and trucks, to increase import duties on a variety of products.

The White House touted progress in a new trade deal with Britain on Thursday, with Trump repeatedly asserting that “almost all expenses, including eggs and other groceries, fell on his watch. But despite revising various parts of the trade agenda, walking and delays, the president’s tariffs have made many products more expensive than earlier this year.

Both NIQ and federal inflation data show that a series of co-purchases continue to rise. Company executives warn that Trump’s evolving policies will get out of the consumer economy as a whole, with some already warning of potential price increases this year.

Meanwhile, many of the price tags in supermarket refrigerated aisles are rising, with chicken breasts rising by 2%, while chicken breasts rising by 1% in NIQ data four weeks ago. Year by year, the cost of beef has increased by nearly 10% and the price of eggs has increased by nearly 50%.

But not everything becomes more expensive. Among the staple foods surveyed, bacon and orange juice prices fell.

Prices of many meat and dairy products may continue to swing, depending on Trump's trade war.

Michael Swanson, chief agricultural economist at Wells Fargo Agri Food Institute, noted that the United States is the main pork producer, with about one-fifth of meat exports. About 15% of U.S. chicken and dairy products are also usually shipped abroad - retaliatory tariffs in other countries now threaten this situation.

"If these three (product categories) cannot find these export markets due to tariff actions and people do not buy them at all, it will force the United States to keep the product home," Swanson said.

This will be welcome news for consumers, but not for farmers. As foreign buyers buy at the time of purchase, agricultural exporters have already caused an alarm about the "mature crisis". Chinese importers recently stopped delivering 12,000 tons of U.S. pork, the biggest cancellation since 2020.

"If we have expanded trade disputes, in fact, some categories of inflation are actually more than inflation," Swanson said.

However, this is still a big "if" because the Trump administration reached an angle of deal with Beijing, while publicly expressing the difficult route of talks. Until any armistice has been trained, China still faces a valid U.S. tariff rate of 145%, and with its own responsibilities up to 125%.

Swanson notes that when it comes to agricultural supplies, “Chinese people do have the ability to put pressure on us because they actually buy more from us than we buy from them.”