In spite of inflation slowing to a rate of 3.4% year-over-year in April, warehouse club Costco has increased prices on a few items that may surprise shoppers. Additional price hikes may also be in the works.
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However, the club isn’t making across-the-board increases. On a recent earnings call, then-CFO Richard Galanti explained that some items, including furniture, have dropped in price thanks to reduced freight costs. “Some deflationary items were as much as 20% to 30% and, again, mostly freight-related,” he said.
However, to the surprise of members, the club quietly increased prices on some staples.
Olive Oil
Prices on Kirkland Signature organic extra virgin olive oil may vary by store and region. EatThis,NotThat! (ETNT) reported that shoppers across the U.S. and Canada saw notable price increases in the product recently.
At one store in Brooklyn, New York, the olive oil skyrocketed from $16.99 in March 2023 to $24.99 this year, according to ETNT.
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Costco Gas
Fuel prices at the pump fluctuate daily based on a number of factors. Costco gas tends to be 30 to 50 cents cheaper than other gas stations. But the company has recently edged up gas prices to increase their profit margin, according to TheStreet.
On his last earnings call, Galanti said that there’s been improved profitability in gasoline as the club has been able to increase prices in line with the market. He noted, [O]thers are making more and we’re allowed to make a little more.”
Membership
This hasn’t happened yet, but during his last earnings call as CFO, Galanti hinted at a price increase for the Costco Gold and Executive memberships. It would be the first increase since 2017. The increase would likely be $5 for a Gold membership and $10 for the Executive membership, which delivers 2% cashback on most Costco purchases.
At that point, it might be worth evaluating if a Costco membership is still worth it to you, or if you would regret renewing your card at a higher price.
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This article originally appeared on GOBankingRates.com: Costco Is Raising Prices: 3 Unexpected Items That Will Cost More Money This Year
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