Trader Joe's has raised the price of its bananas for the first time in over 20 years. The price jumped from 19 cents to 23 cents each, marking a 20% increase.
The company explained to FOX Business that the hike still offers "a tremendous everyday value." They emphasized that price adjustments only occur when their costs change.
"After holding our price for bananas at 19¢ each for more than two decades, we’ve now reached a point where this change is necessary," Trader Joe's stated.
Despite the increase in banana prices, the company highlighted its success in reducing prices for other products. They've negotiated lower costs and passed the savings onto customers.
For example, raw almonds saw a price reduction of a dollar. Romaine hearts and organic tri-color bell peppers dropped by 50 cents.
The price for green onions hit a decade low at 99 cents. This comes as the Labor Department reported a significant inflation spike in January, driven by grocery and housing costs.
The consumer price index rose by 0.3% in January month-over-month. Year-over-year, prices went up by 3.1%.
Inflation has decreased from its peak of 9.1% but remains above the Federal Reserve's 2% target. Despite a slowdown, experts caution that consumers might not feel relief soon, especially with food costs.
"Prices very rarely go back. There's disinflation, meaning the rate of increase slows down. But the way we dig ourselves out of this is that people make more money above the rate of inflation," said Robert Frick of Navy Federal Credit Union. "That's happening now, but it's not a quick solution. It's going to take two or three years before people feel real relief from the surge in inflation, especially with things like food."