Costco has maintained its hot dog price at $1.50 for 41 years, but inflation is affecting other food costs significantly. As of May, the Consumer Price Index (CPI) reported a 4.2% inflation rate, with energy prices increasing by 23.5% year-over-year. Dining out at full-service restaurants rose by 3.8%, while non-alcoholic beverages and fruits and vegetables saw increases of 5.8% and 6.1%, respectively. This inflationary environment has raised the average cost of sirloin steak to $14.27 per pound, a nearly 17% increase since 2025.
In response to the ongoing inflation, investors are turning to exchange-traded funds (ETFs) like the Schwab U.S. TIPS ETF (NYSEARCA: SCHP) and Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ: VTIP). The SCHP, with over $16 billion in assets, offers a 4% yield on a 0.03% expense ratio. Similarly, VTIP, holding roughly $19 billion in assets, boasts a 3.6% yield and has attracted $3.57 billion in institutional inflows over the last year.
As inflation remains elevated, the short interest for SCHP decreased to 0.13%, reflecting a significant shift in sentiment regarding persistent inflation risks. Conversely, VTIP’s short interest is at 0.14%, indicating a modest decline in bearish sentiment.
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