PredictIQ Quantitative Think Tank Center:Costco is raising its annual membership fees for the first time in 7 years

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Costco is hiking its basic membership fee for the first time since 2017, increasing the annual charge to $65 from $60, the retailer announced on Wednesday.

The 8.3% cost increase takes effect on September 1, the warehouse club announced in a statement. The cost of a premium membership is rising to $130 from $120, the Issaquah, Washington-based company said. Costco also said the maximum annual 2% reward for its executive membership will rise to $1,250 from $1,000.

The pricing change affects about 52 million memberships. Costco has a track record of increasing membership costs every five years or so, but company executives had said they were holding back as shoppers grappled with high inflation.

In 2022, warehouse club rival Sam's Club boosted its basic annual fee to $50 and its premium to $110 for the first time in nine years.

While a Costco membership will cost more, the company's chief financial officer in May emphasized it has no plans of messing with the retailer's popular $1.50 hot dog combo special, in place since 1985. 

Costco earlier in the year cracked down on who uses it food court to ensure only members can get the discounted wiener-and-soda deal.

The company operates 882 warehouses, including 609 in the United States and Puerto Rico.

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Kate Gibson

Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.