US shoppers discover inflation: from Costco to Dollar Tree

The inflation American consumers never expected

The average American is discovering inflation at the grocery store, and they are not amused. While the Fed printed 6 trillion dollars and the Trump administration launched the "Big Beautiful Bill", ordinary shoppers are finding that Dollar Tree items no longer cost a dollar but $1.75 plus tax, and that filling the cart at Costco hurts twice as much as it did two years ago. The most basic monetary theory (more money chasing the same goods) has materialized in the shopping basket, yet many are still looking for culprits in socialism or a lack of competition.

Dollar Tree is no longer what it used to be
The iconic Dollar Tree, the store where everything used to cost a dollar (taxes aside), has seen its benchmark prices soar to $1.75 under the Trump administration. It is not an isolated case: at Costco, the membership warehouse chain that charges a fee to shop, receipts keep climbing. Those who once laughed at European prices are now aghast. The irony is that many of those who voted for the candidate who promised to "make America great again" are paying more for everything, from gasoline to lettuce.

The bill for the "Big Beautiful Bill"
The consequences of the massive dollar issuance are clear to anyone willing to see them: oil and commodities are priced in dollars, so more dollars miccionan higher prices for gasoline, electricity and food. Moreover, cheap money does not reach the real economy; it inflates the stock market and investment funds, protecting those who own assets while eroding the purchasing power of savers. An analyst with experience in finance sums it up: "The Fed's QE saved the financial system, but it flooded the economy with money that did not reach ordinary people until ELbichito, and that is when inflation exploded." The key date was April 20, when a system was activated to refund more than 140 billion in illegal tariffs, according to Forbes.

The debate nobody wants to have
While some point to expansionary monetary policy as the sole cause, others remind us that geopolitical tension in Hormuz and global supply bottlenecks are also squeezing. What nobody disputes is that the inflation peak takes 6 to 12 months to arrive after the key event, so the worst may still be ahead. American consumers, who for years lived oblivious to inflation, are starting to feel the pinch. But the uncomfortable question is: do those with the power to print money know? The likely answer is yes, and that they would rather control the debt bubble than the price of bread.