The other day, I had a moment of minor internal rage when I walked into my local supermarket to pick up a box of cereal – the same cereal I eat every week.

And lo and behold, the price had increased by $0.20.

Now I’m not going to pretend that a single $0.20 increase is going to make or break my budget. Thankfully, there are things I can cut back on if needed to make up for higher grocery prices. 

But not everyone is in that situation. 

Americans are feeling increasingly squeezed when it comes to covering essentials. In September, the last month for which CPI data is available, living costs were up 3% on a year-over-year basis. And everyday shoppers are hurting as a result.

Prices on these essentials are rising

As of September 2025, prices are up on a year-over-year basis on these essentials:

  • Groceries: 2.7% up
  • Restaurant food: 3.7% up
  • Electricity: 6.4% up
  • Piped gas service: 5.1% up
  • Housing: 3.6% up
  • Transportation: 2.5% up
    Source: Consumer Price Index

When costs are higher everywhere you look, something’s got to give.

Costco has pledged to pivot on inventory to help mitigate economic pressures on customers.

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Costco is trying to ease the burden for consumers

At a time when so many people are struggling to cover their costs, Costco is stepping up to try to help.

A big reason prices keep rising is that tariffs are costing retailers more money. So naturally, many have to pass those costs along to consumers to maintain decent profit margins.

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Costco, however, has more flexibility to keep prices low, since it relies on membership fees to drive much of its revenue. At a time like this, that’s important. 

As CFO Gary Millerchip said during the company’s most recent earnings call, “We believe our expertise in buying and the flexibility afforded by our limited SKU can give us greater agility to navigate the current environment and minimize the impact of tariffs. Our ultimate goal is to increase our member values compared to the market.”

Costco has pledged to pivot on inventory as necessary to help mitigate the impact of tariffs. The company can also use its Kirkland Signature brand to offer essential products at lower prices at a time when customers really need it. 

Costco is holding prices steady on popular items

At a time when so many people are used to seeing constant price increases, Costco is doing its part to hold prices steady on a number of key items. These include the famous $1.50 inflation-proof hot dog and soda combo, as well as the $4.99 rotisserie chicken.

In fact, Millerchip said that Costco members are consistently buying products whose prices are staying consistent at a time when everything else is increasing. 

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“While our members love the treasure hunt items that they find in our warehouses and online, our everyday value items are also extremely important to them, especially in times of economic uncertainty,” Millerchip said. 

“There are no better examples of this than our hotdog combo, rotisserie chicken and KS bath tissue.”

In fiscal year 2025, Costco sold over 245 million hot dog combos and more than 157 million rotisserie chickens. 

Millerchip also said the company sold “enough bath tissue to reach the moon and back over 200 times.”

But holding prices steady on core items doesn’t just help consumers conserve funds. It also builds trust. 

If Costco members know they can walk into the store and pay the same price they always have for key items, that not only gives them peace of mind, but also motivates them to come back.

So it’s a smart strategy for Costco, and one that’s apt to benefit consumers at a time when so many people’s budgets are stretched to the max. 

Maurie Backman owns shares of Costco.

Related: Costco quietly drops popular product angering members