The cost of living is about get more expensive after beef prices have also begun to rise alongside the price of eggs.
According to Fox Business, the Labor Department ‘s Consumer Price Index has said prices for beef and veal rose in January by 5.5%, outpacing all other food items which rose by 1.9%.
Courtney Schmidt, Sector Manager at Wells Fargo Agri-Food Institute told Fox Business that the increase is due to increased and consistent consumer demand for beef, adding that U.S. cattle herds are also experiencing historically low numbers.
Schmidt did, however, have some good news, and said that the increase in beef prices will likely aid the pork and chicken industries that have been recently in a downturn.
“Improving consumer demand and supply corrections have resulted in price improvements for these meats.” according to Schmidt.
Bernt Nelson, an economist with the American Farm Bureau Foundation, said the U.S. cattle and calf inventory was down by 1% over January 2024, signaling an ongoing decline in herd numbers. He further noted that the price of slaughter-ready steers and cattle has reached record highs, which is good for seller, but poses its own challenges for buyers.
“Calf prices are also strong, which presents an opportunity for cow-calf producers. If these calves are retained or sold for breeding, it will remove more cattle from the beef market and tighten supplies further before possible expansion with the 2026 generation of calves,” Nelson said, per Fox News.
Nelson said the industry is not experiencing a typical cattle cycle – where high prices lead to herd growth. Instead, the high prices could force farmers to sell off more calf-producing females for beef, which would add to the decline in cattle herds. This would further drive-up prices.
According to USA Today, egg prices are also set to continue on an upward trajectory, with the U.S. Department of Agriculture releasing a report Tuesday that egg prices are predicted to increase by another 41.1% in 2025, along with a 3.4% increase on all other food items.
The USDA further reported that retail egg prices have increased by 13.8% in January, after increasing by 8.4% in December 2024.
“Retail egg prices continue to experience volatile month-to-month changes due to an outbreak of HPAI that began in 2022,” the department said. “HPAI contributes to elevated egg prices by reducing egg-layer flocks and egg production.”
Over 18 million commercial egg-laying chickens were destroyed in January 2025 after apparently being infected with bird flu.
