NEW YORK (AP) — Faced with the rising cost of goods and freight, discount retail chain Dollar Tree says it will be raising its prices to $1.25 for the majority of its products.

Dollar Tree said Tuesday that the reason for raising its prices to $1.25 was not due to short-term conditions and said the price increases were permanent.

The higher prices will also allow the company to cope with what it called historically high merchandise cost increases as well as higher operating costs such as wages.

Rival Dollar General has also raised prices in recent years.

(Copyright (c) 2021 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Join our Newsletter for the latest news right to your inbox