Despite inflation slowing to a year-over-year rate of 3.4% in April, warehouse club Costco raised prices on a few items that might surprise shoppers. Additional price increases could also be considered.
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However, the club does not make general increases. During a recent earnings conference call, then-CFO Richard Galanti explained that some items, including furniture, had seen price declines thanks to reduced transportation costs. “Some deflationary elements were as high as 20-30% and, again, were mainly freight-related,” he said.
However, to the surprise of members, the club quietly increased the prices of some basic products.
Olive oil
Prices for Kirkland Signature Organic Extra Virgin Olive Oil may vary by store and region. Eat this, not that! (ETNT) reported that buyers in the United States and Canada have recently seen notable price increases for the product.
At a store in Brooklyn, New York, olive oil went 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 depending on a number of factors. Costco gas tends to be 30 to 50 cents cheaper than other gas stations. But the company recently raised gas prices slightly to increase its profit margin, according to TheStreet.
During its latest earnings conference call, Galanti said profitability in the gasoline business had improved as the club was able to increase prices based on the market. He noted: “Others earn more and we are allowed to earn a little more. »
Membership
That hasn’t happened yet, but during his last earnings call as CFO, Galanti hinted at a price increase for Costco Gold and Executive memberships. This would be the first increase since 2017. The increase would likely be $5 for a Gold membership and $10 for an Executive membership, which offers 2% cash back on most Costco purchases.
At this point, it might be worth evaluating whether a Costco membership is still worth it or whether you’d regret renewing your card at a higher price.
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This article originally appeared on GOBankingRates.com: Costco Raises Prices: 3 Unexpected Items That Will Cost More This Year
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