Business Insider has been tracking 45 key products at Costco to see the impact of higher energy costs.
The US and Israel’s war with Iran earlier this year sent the oil market reeling.
The change has been small so far, but comments from Walmart suggest the steadiness might not last.
US households have spent much of this year waiting for the other shoe to drop.
After the US and Israel’s war with Iran sent the oil market reeling, starting in late February, it seemed that grocery bills would not be too far behind. Transportation costs have risen for many businesses, and some supplies, such as the fertilizer farmers need to grow produce, have been disrupted.
But while gas prices have slammed drivers’ wallets in the last few months, the cost of many staples at Costco has hardly budged since January.
I’ve been visiting a warehouse in Wisconsin every few weeks this year to document the on-shelf prices of 45 commonly purchased items across several categories.
I chose the warehouse club because it’s known for adding minimal markup to its goods. I’d expect any significant cost changes to be more evident there than at a retailer that cushions prices more.
The retailer also runs most of its own supply chain operations, so it doesn’t have the same third-party transportation expenses. That puts a bigger spotlight on fuel costs.
Some up, some down, mostly flat so far
Of the 45 items, seven had price increases from January to May and five had price reductions. The overall change was effectively flat.
Costco did not respond to a request for comment on this story.
The most significant changes I saw were in coffee beans and beef, both of which are facing significant supply pressures that have relatively less to do with fuel prices.
The price of a two-pound bag of Starbucks coffee beans jumped from $16.80 in January to $19.99 in April, a 19% increase.
Meanwhile, the four-pound packs of organic ground beef that sold in March for $25.99 disappeared from the shelves of my local Costco, replaced in May with similar packs of conventional beef costing $24.99. That’s not a price hike per se, but a notable value substitution.
Bacon also ticked up gradually from February to May, with each three-pound pack costing about $0.50 more a month, rising a total of $1.50.
Surprisingly, motor oil, which has made headlines over impending shortages, was in stock and consistently priced throughout my visits.
Fresh produce prices fluctuated a bit, with berries coming down in price as they came into season.