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Inflation is something a lot of consumers are familiar with these days due to recent spikes. In 2022, annual inflation peaked at 9.1% during the month of June. And that did a number on a lot of people’s personal finances.
Even though the pace of inflation has slowed since 2022, consumers are still paying up for expenses like groceries, utilities, and apparel. And while Costco has done its best to maintain its low prices in the face of inflation, you’ve probably noticed that some of the items at your local warehouse club store are more expensive these days than they were a few years ago.
But there are two items at Costco whose prices haven’t risen since inflation started surging. And those specific items may be immune to inflation for the foreseeable future.
There are certain deals that Costco has come to be known for. One is the $1.50 hot dog–and–soda combo that you’ll find at the food court. The other is the $4.99 rotisserie chicken.
Costco’s long-term CFO Richard Galanti made a point to keep these ultra-low prices locked in despite raging inflation so that customers could get some relief from surging costs. And even though Galanti stepped down from that role on March 15, prior to his departure, when asked in an interview about the price of the hot dog–and–soda combo, his response was, “It’s probably safe for a while.” Galanti also echoed that sentiment for the chain’s rotisserie chicken.
This doesn’t mean that the cost of the combo or rotisserie chicken won’t rise at some point down the line. First of all, with a new CFO could come changes that include a shift in prices. And while Costco may not make changes to its prices for these popular items in 2024, that doesn’t mean they won’t rise eventually. But for now, consumers don’t need to stress about having to shell out extra money.
It may be quite some time before you find yourself having to spend more on a Costco hot dog or chicken. But the cost of these and other items could rise in time due to inflation.
Remember, the inflation we’ve experienced in recent years has been beyond the norm. But moderate inflation is extremely normal, and it’s something everyone should anticipate.
One of the best things you can do to cope with rising costs is to keep your fixed expenses on the low side. You can’t help it if the cost of your cable and internet bundle rises from $89.99 a month to $97.99 from one year to the next. But you can make a point to sign a fixed-rate mortgage you can easily cover the payments on, so you’re only spending a small portion of your paycheck on housing. And similarly, you can buy an inexpensive car so your auto loan payments for the next five years are nice and manageable.
It’s natural for consumer expenses to rise with time — even at a store like Costco. But even if the cost of a Costco hot dog–and–soda combo or rotisserie chicken never increases, most of your other bills probably will. The best way to avoid getting hurt financially is to limit what you spend on the expenses whose costs you can lock in for many years.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Gala. The Motley Fool has a disclosure policy.
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