Dollar Tree raises prices by 25%

Most items will be at least $1.25

U.S. (KYMA, KECY/CNN) - Dollar Tree has announced Tuesday that it will increase prices on most of its products from $1 to $1.25 by early 2022.

This change comes from a period of price inflations, putting pressure on low-cost stores such as Dollar Tree and Dollar General.

The $1.25 will be a permanent change, as Dollar Tree stated this change was "not a reaction to short-term or transitory market conditions," following their quarterly earnings release.

Products being sold for a single dollar has hurt the company and forced them to stop selling certain products, but the 25% increase can return those items, expand its selection and increase wages as well.

"This is the appropriate time to shift away from the constraints of the $1 price point," CEO Michael Witynski stated.

Dollar Tree has been slowly raising prices for a small selection of items recently but a majority of their inventory was sold at a $1 for 35 years.