ALBUQUERQUE, N.M. — Shoppers have not paid a flat dollar for anything at Dollar Tree for years.

After 35 years, the dollar minimum price became $1.25 in 2021. Now the company has announced over 300 new items will range from $1.50 to $7.

Currently, prices are capped at $5 per item.

New Mexicans are feeling the pinch. Last month, a study showed New Mexico ranked in the top 10 for most expensive groceries – averaging $286 per week.

Reps with Dollar Tree say food will most likely be affected by the price hike, as well as pet supplies and personal care items.

The reason? A combination of inflation and an influx of higher-income customers.

The company is calling this their multi-price assortment and says the new prices will go into effect later this year. They also announced they are closing hundreds of Family Dollar stores this year.

KOB 4 has not received a response yet on whether any stores will be closing in New Mexico.