Why Grocery Prices Stay High Despite Falling Costs

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Egg prices drop again — but shoppers aren’t seeing relief

National egg prices have dropped for the third consecutive week, but if you’ve been to a Valley grocery store lately, you’d never know it. A dozen large white eggs can still cost up to $9.99 — triple the national wholesale average of $3.27, according to the USDA. So why is the price on the shelf so out of sync with the market?

“It takes time for price changes to reach consumers,” explains Adrian Larson, partner at EP Wealth Advisors. The price you see reflects inventory bought weeks ago at higher rates, not current wholesale costs. Until that stock is sold, retailers often won’t adjust pricing — especially in today’s unstable market conditions.

Bottom line: Retailers are reluctant to cut prices too quickly, aiming to preserve profit margins amid supply chain unpredictability.

Three ways to manage food costs right now

While prices lag behind, here’s what Larson suggests shoppers can do to soften the blow:

1. Change what’s on your plate

  • Look for store brands that match your quality expectations.
  • Swap expensive items for more affordable alternatives (e.g., replace eggs with beans or tofu).
  • Adjust meal plans to reflect changing prices — without sacrificing nutrition.

2. Shop with a strategy

  • Use online ordering to monitor and limit your spending in real time.
  • Identify core vs. splurge items and cut back where you can.
  • Sign up for store loyalty programs to access exclusive discounts on staples.

3. Tighten up your broader budget

  • Review your full spending habits — not just groceries — for potential cutbacks.
  • Focus on free or low-cost sources of joy while pulling back on discretionary expenses.
  • Accept that some changes are temporary and prioritize financial stability.

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