In the United States, the warehouse chain store Costco is renowned for offering high-quality goods at affordable prices. However, with no immediate signs of inflation easing, some previously popular items may not be the best choices to purchase at Costco.
According to a report released by the U.S. Department of Labor on June 12, the Consumer Price Index (CPI) showed a month-over-month increase of zero in May, with a year-over-year growth of 3.3%, still surpassing the Federal Reserve’s 2% inflation target.
Despite inflation, Costco maintains a good reputation among a wide range of consumers. Still, not all items sold at Costco are necessarily cost-effective.
While it’s not Costco’s fault, a few items have failed to maintain competitive prices, leading to some discontent among members on social media. GOBankingRates compiled a list of 5 items not recommended to buy at Costco during inflation, surprisingly including gasoline and olive oil.
The inflation is driving up the prices of ground coffee, which have been steadily rising since 2019. In 2022, coffee prices rose by 39%, and this trend is expected to continue in 2024.
GOBankingRates recommends buying coffee beans and ground coffee at home.
Olive oil is a staple in almost every kitchen. Costco members have long favored the Kirkland Signature brand of organic extra virgin olive oil. However, olive oil prices have been on the rise recently and are likely to continue increasing in the future.
According to a report by “Eat This, Not That,” a Costco member found “two 3-liter bottles of Kirkland Signature refined olive oil, priced at $50.99” at a local Costco store. From March 2023 to this year, the price of olive oil at a Costco store in Brooklyn increased from $16.99 to $24.99.
Becoming a Costco member comes with various discounts, but one of the most popular perks is access to lower gasoline prices compared to regular gas stations. If inflation continues to rise, Costco’s ability to maintain discounted gasoline prices may become uncertain.
As reported by The Street, Costco has quietly raised gasoline prices.
Former Chief Financial Officer of Costco, Richard Galanti, stated at the beginning of 2024 that “we compare prices weekly with every gas station we operate and those around us. The profit margins we set are actually higher, and the per-gallon increase in cents is higher than we’ve seen before.”
Costco is known for its great deals on beef, poultry, seafood, and pork, but under inflation, meat prices have shown fluctuations.
Beef prices rose by 11% in 2023, continuing a trend of continuous price increases over the past three years.
The prices of insulated cups sold at Costco, especially the Yeti brand, have recently significantly increased. While Costco’s insulated cups used to be an excellent choice for reusable beverage cups at an affordable price, the new prices may exceed the budget of the average Costco shopper.
GOBankingRates suggests considering affordable options like the ThermoFlask 32-ounce insulated cup with standard straws, priced at around $33 for a set of two, if you still plan to purchase insulated cups at Costco.