Remember when food prices rose over 10% annually? Food price increases have largely declined over the past two years.

In one case, prices actually fall.

Gary Millerchip, Costco’s chief financial officer, said the warehouse chain has been able to reduce prices on some of its private label products in recent months. Of course, it’s worth noting that Costco increased its basic membership prices from $60 per year to $65.

Millerchip said the price of its boneless chicken fillets fell 13%.

Other examples cited by Millerchip included the reduction of Kirkland standard foil from $31.99 to $29.99, the reduction of macadamia nuts from $18.99 to $13.99, the reduction of 3 liters of Spanish olive oil from 38 .99 to $34.99 and the reduction of two packs of baguettes from $5.99 to $4.99.

There are a few reasons Costco has reduced costs. One of them is that different packaging is used for some products. Costco recently switched the packaging of its laundry boxes from a rigid plastic tub to a bag. According to Costco, the bags cost 80% less than plastic cups.

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Although the price of its fried chickens was not reduced, the packaging was replaced with thin plastic packaging, which angered some of the wholesaler’s customers.

Costco has also reduced the cost of shipping items.

“Manufacturing these goods closer to the countries in which they are sold will significantly reduce both the costs and emissions associated with shipping these goods,” Millerchip said.

Price drops are rare, but not unprecedented

Over the last decade, home food prices have increased by an average of 2.7% per year. But there have been a few years when these prices have fallen. According to the Bureau of Labor Statistics, food prices fell 0.4% nationwide in 2016.

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In 2009, amid a global recession, food prices in U.S. grocery stores fell 2.5%.

Food prices rose just 0.8% year-on-year in August, a far cry from the more than 10% annual increases seen in 2022, according to government data.