Costco vows not to hike the price of its $1.50 hot dog combo

Rest assured, Costco and wiener fans — despite inflation having driven up the cost of groceries to their highest level in years, the budget retailer has no plans to raise the price of its fabled $1.50 hot dog combo special.

The wholesale club's new chief financial officer, Gary Millerchip, underlined that point during a call with Wall Street analysts this week to discuss its third-quarter results. 

"To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe," Millerchip said, referring to Costco's hot dog and soda deal. 

Although that might seem like a minor aside for a global retail chain valued at $354 billion, Costco's low-cost dog has become an emblem of the company's commitment to delivering value. In short, it's great marketing. Costco hasn't hiked the price of its hot dog since 1985.

Costco has even cracked down who uses its food court to ensure that only warehouse members can get discounted dogs. A basic Costco membership costs $60 annually, while the executive membership, which has perks like a 2% cash-back reward, runs $120 per year.

Costco has interest in emphasizing its affordable prices as inflation-weary consumers pull back on everything from fast food to takeout coffee. Target, Walmart, Walgreens and other retailers have also recently dropped their prices on a range of goods.

Of course, the Costco dog isn't the only product out there whose price seems like it's from yesteryear. Other popular items whose inflation-adjusted prices have remained relatively low, or even dropped, over the years include coffee, televisions and plane tickets. 

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.