By Clark 
Traveling back to 1985 would enable significant savings on grocery expenses. Historically, bananas were priced at 33 cents per pound, a dozen eggs at 80 cents, and a half-gallon of milk at $1.09, as reported by the U.S. Bureau of Labor Statistics, which has monitored consumer pricing for over a century.
In 2023, the prices of essential culinary items have significantly increased; notably, eggs are priced over five times higher, averaging over $4.21.
However, one food item has remained unchanged in price, despite the passage of time. Notwithstanding decades of inflation and extensive socio-economic transformation, this beloved snack has stayed remarkably constant since the Reagan Administration, akin to a price-fixed relic.
I am referencing Costco’s renowned hot dog combo, which has remained steadfast at $1.50 for about 38 years and continues to do so.
That is exceedingly inexpensive in contemporary currency, even for a hot dog. Indeed, if the Costco hot dog were comparable to nearly any other food item in America, its price would be nearly thrice greater.
A new investigation by Ecoinometrics quantitatively altered the price of the renowned frankfurter using various inflationary metrics, including the prevalent Consumer Price Index (CPI) provided by the federal government. The investigation also examined additional indices, particularly CPI sub-categories that directly pertain to food, rather than consumer goods in general.
The analysis, utilizing four distinct models, determined that the Costco hot dog should realistically be priced between 142% and 227% higher, precisely ranging from $3.63 to $4.91. According to the CPI, the club’s sausage and drink combination would be priced at $4.28.
The Costco hot dog is not merely a conventional food item, influenced by typical market fluctuations. No, it is distinctive—the fixed pricing symbolizes the warehouse club’s asserted dedication to value, which is why the organization endeavors to maintain such low costs.
When current Costco CEO Craig Jelinek suggested increasing the price, a firm co-founder allegedly said, “If you raise the price of the hot dog, I will kill you.” Resolve the issue.
To reduce expenses, the warehouse club opted to terminate its conventional hot dog supplier and produce the sausages in-house, establishing a facility in California in 2011 and another in Chicago in 2018.
The inflation-resistant hot dog persists in boosting sales for the exclusive club. Costco announced the sale of 157 million combos last year.