The cost of breakfast staples like eggs and avocados is increasing, making once-affordable meals more of a luxury. Egg prices have surged due to the bird flu outbreak, while potential tariffs on Mexican avocados may soon lead to higher costs for this popular fruit. Consumers are already feeling the pinch as these price hikes impact their daily routines.

Impact of Bird Flu on Egg Prices

The bird flu has significantly affected egg production, leading to a sharp increase in prices. This viral disease has spread to various regions, causing the loss of millions of birds. As a result, the availability of eggs has decreased, driving up costs and making them harder to find in stores. The situation has forced consumers to reconsider their breakfast choices, with some opting for alternatives or reducing their consumption.

In January, the average price for a dozen eggs reached an unprecedented $4.95, according to data from the US Bureau of Labor Statistics. The outbreak has not only impacted poultry but also dairy cattle and, in rare cases, humans. This widespread disruption has led to a scarcity of eggs, further exacerbating the price surge. Retailers and restaurants are adjusting their menus and pricing strategies to accommodate these changes, with some establishments adding surcharges or limiting the number of eggs per order.

Potential Tariffs and Avocado Prices

The future of avocado prices hangs in the balance as trade tensions between the US and Mexico escalate. A proposed 25% tariff on Mexican imports could drastically increase the cost of avocados, which primarily come from Mexico. Even before the potential tariffs, avocados were already 17% more expensive in early February compared to the same period last year. Economists warn that consumers will bear the brunt of these price increases.

Avocados are considered elastic goods, meaning that people tend to purchase them regardless of price fluctuations. However, the added cost could make this breakfast favorite less accessible to many. Professor Gary Williams from Texas A&M University notes that a tariff on avocados would essentially be a tax on US consumers, with most of the revenue coming from their pockets. As a result, the beloved avocado toast may soon become a treat rather than a daily indulgence. Consumers across the country are already noticing the effects, with higher prices at grocery stores and restaurants alike.