Egg prices are soaring, breaking new records as the bird flu outbreak grows. Why it matters: No food item has been as much of an inflation poster child like eggs, and their prices often give a clue about the economic environment.

Wholesale prices for large eggs hit $5.57 per dozen in the Midwest in December, which was up 150% from a year ago, according to commodity data firm Expana. Prices were even higher in California, reaching a record high of $8.85 per dozen.

The production of eggs in the United States dropped by 4% in November, according to the USDA, as prices of eggs continue to rise alongside bird flu cases.

The shortfall has sent egg prices everywhere rocketing in a trend that has accelerated during the holidays. At Pete’s, co-owner Lindsay Timpson said the restaurant paid $43 for a case of eggs a year ago. As of Monday, they were paying $128. In a six-day stretch in December, prices rose 35%.

Most large-scale egg producers to whom the law would apply have been working toward cage-free operations for up to a decade.

Egg prices across northern Nevada have soared in recent weeks, mirroring a recent nationwide trend driven by holiday demand and the avian flu.A News 4-Fox 11 cr

California egg prices continue to climb due to ongoing outbreaks of highly pathogenic avian influenza. December's statewide average for a dozen large shell eggs reached nearly $9, per a U.S. Department of Agriculture report.