As Inflation Ravages America, Even Costco Is Raising Food Court Prices - Some by 33%

This is how inflation generally works in the food industry. They like their 4s and they REALLY like their 9s. They will resist increasing prices as long as they possibly can. Then it is usually a BIG jump to catch up with years of stagnant prices. So that 2.99 value meal stays at 2.99 for 10 years. Then it jumps to 3.99. That is a HUGE increase, percentage wise. But when it is broken down and annualized, it is only 3.33% year over year. (And if you want to figure it as compounded inflation, it is closer to 3%.)

I remember way back when, when I was working at McDonald's and the value meals *were* still $2.99. most of the time, a sandwich and medium fry (which is what came with the meal) were $3.00. They had increased the prices of the sandwiches and fries, but we're resisting raising the value meal prices because that was a signature price point, and the market responded far more to that price moving than they did with individual menu item prices. So you could buy a sandwich and medium fry. Then ADD a medium soft drink and get BACK a penny.

Also, they aren't going to raise a menu item price from $0.99 to $1.07. They'll likely go to $1.19, or even $1.24 or $1.49. Consumer math isn't normal math. But you see it everywhere - nothing EVER costs a round number. No $5.00, $100, or $10,000. Always $4.99, $99, or $9900/9999

At least the hot dog and soda is safe from moving "above a buck fifty,” according to Jelinek!