Costco reports that it's dropping prices on many items. Here's why

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Costco reports that it's dropping prices on many items. Here's why
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Justin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.

Remember when food prices were going up at a rate of over 10% a year? Price hikes on food have largely declined the last two years.In one case, prices are actually going down.Gary Millerchip, chief financial officer of Costco, said the warehouse chain has been able to lower prices on some of its private label products in recent months. Of course, it should be noted that Costco raised the prices of its basic members from $60 a year to $65.

RELATED STORY | Costco will start scanning membership cards at store entrancesAlthough it didn't lower the price of its rotisserie chickens, it did change the packaging to a thin plastic, which upset some customers of the wholesaler. Costco has also reduced the cost of shipping items.“By manufacturing these goods closer to the countries in which they're sold, both costs and emissions associated with the shipment of these goods are greatly reduced,” Millerchip said.

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