Title: 'Six eggs used to be £1' - why everyday essentials cost so much more now

For years, shoppers have been purchasing the same basic supermarket items week after week. It is a common observation that checkout totals have climbed, even when indulgences such as wine and biscuits are left in the aisles. However, the exact magnitude of price hikes for daily necessities like milk, eggs, and bread over the last few years may still come as a shock. This report details the extent of these increases, the underlying causes, and whether any specific entities are benefiting from the surge.

The soaring cost of eggs

In 2022, consumers could purchase an average box of six supermarket own-brand free-range eggs for just £1. Today, that same item costs £1.80, according to market researchers Assosia, which analyzed average pricing across Tesco, Sainsbury's, Asda, and Morrisons for the BBC.

The dramatic price hike occurred after millions of hens were destroyed during the UK’s most severe avian flu outbreak between 2021 and 2023. This event caused a sudden shortage of laying hens, while restrictions requiring birds to be kept indoors increased energy expenses. Consequently, supermarkets implemented purchase limits, and both producers and retailers raised prices to compensate for their losses.

Production costs for eggs are significantly driven by the price of grain for hen feed, heating facilities, and transportation. Ukraine, a primary grain supplier, saw costs skyrocket following Russia’s full-scale invasion in 2022. The conflict also contributed to rising energy prices, a trend currently being exacerbated by the war in the Middle East. Despite these cost pressures, demand for eggs remains robust, fueled by the popularity of high-protein diets.

Milk: Energy-intensive production

Milk has also become more expensive, rising from £1.29 for four pints of semi-skimmed milk in 2022 to £1.65 today, based on Assosia’s data regarding supermarket budget ranges. The dairy sector is heavily reliant on energy for milking, processing, and transport, meaning the energy price spikes following the war in Ukraine severely impacted the industry.

Although prices surged initially, the rate of increase has slowed in recent years due to a global oversupply of dairy. However, the financial strain on producers is evident; according to agricultural analysts The Andersons Centre, dairy farmers are now receiving 25% less per litre of milk than before, with many operating at a loss.

Producer margins squeezed

While producers and farmers maintain stock levels of staples like eggs, milk, and bread, their input costs have outpaced inflation. The Office for National Statistics (ONS) reports that the prices producers pay for materials and goods increased by 7.7% in the year leading up to April, marking the largest rise in over three years.

Conversely, factory gate prices—the amount producers charge retailers and wholesalers—only increased by 4% during the same period. Danni Hewson, head of financial analysis at AJ Bell, explained that contracts between producers and supermarkets are negotiated in advance.

"Without a crystal ball nobody can know what is going to happen" to costs for producers and farmers at the time contracts are signed, Hewson noted. While this allows farmers to request higher rates upon contract renewal, they cannot typically adjust prices mid-contract when energy or fuel costs soar. "So there will be a degree of some of these price increases, obviously, having to be swallowed by some of these producers," she added.

Bread prices stabilize

The cost of a basic medium-slice white loaf rose from 65p in 2022 to an average of 74p in major supermarkets. Although Assosia does not track prices at discounters like Aldi and Lidl, other supermarkets generally match prices due to intense competition for customers.

While wheat prices have stabilized following the initial shock of Russia’s invasion of Ukraine, The Andersons Centre warns that conflict in the Middle East has reignited global supply concerns. Hewson described the current economic landscape as a "perfect storm" of inciting factors.

Source: BBC News Generated at: 2026-05-24 01:02:55 UTC