Justice Department Probes Potential Antitrust in Soaring Egg Prices

The soaring price of eggs in the United States has caught the attention of the Justice Department, which has launched an investigation into potential antitrust issues, as reported by The Wall Street Journal. The spike in prices has resulted in significant impacts on restaurants and grocery stores, prompting menu changes and reports of empty shelves.

Price Surge and Consumer Impact

The latest consumer price index report from the Bureau of Labor Statistics revealed a staggering 53% increase in the price of eggs year over year. The cost of eggs rose 15.2% from December to January alone, marking the largest increase since June 2015. This surge in prices has compelled some restaurants, such as Denny's, to implement a surcharge on customers to offset the rising costs.

Possible Causes

While the outbreak of avian flu and subsequent culling of egg-producing populations have been cited as contributing factors to the price increases, there are concerns about potential collusion among large egg producers to manipulate prices or reduce supply. Advocacy group Farm Action has called for a comprehensive investigation into all possible causes, prompting the involvement of the Justice Department and the Federal Trade Commission.

As the investigation is still in its early stages, the Justice Department's findings could have significant implications for the egg industry's market practices and the overall impact on consumers. The outcome of this investigation will be closely monitored by both industry stakeholders and consumers, as it could potentially lead to changes in pricing strategies and regulatory measures within the egg market.