Grocery Prices Are Up 11.3% From a Year Ago -- but You Could Get 4% Back at Costco

Well, that's a silver lining.

If you've been struggling to keep up with the cost of buying groceries, you're definitely not alone. In January, grocery prices rose 11.3% from the previous year as per the latest Consumer Price Index reading. And frustratingly, they rose at a faster pace than restaurant meals.

To be clear, cooking meals at home is still far more economical than dining out. But it's hard to manage your money and work on your savings goals when the price of everything from produce to eggs to cereal seems to be going nowhere but up.

Unfortunately, Costco is no exception. Over the past year, the cost of many Costco favorites has risen, too -- though thankfully, membership prices have held steady. But while you might end up spending more money at Costco today than you would have a year ago, here's some good news: If you play your cards right, you can set yourself up to snag 4% back on your Costco purchases.

The right strategy could go a long way

Like other retailers, Costco has been forced to raise the price of certain goods as a way to manage during this period of rampant inflation. But scoring 4% back on your Costco purchases is an easy matter of choosing the right membership plan and swiping the right credit card.

Costco members can choose between a basic membership for $60 a year and an executive membership for $120 a year. Clearly, that's a big price difference. But with an executive membership, you get the benefit of 2% back on all of your Costco purchases, including the ones you make online.

If you spend more than $3,000 a year at Costco, then upgrading to the executive membership makes financial sense. That's because $3,000 in spending will put $60 back in your pocket, and anything beyond that will mean you've come out ahead in paying for the upgraded membership.

Meanwhile, if you sign up for the Costco Anywhere Visa® Card by Citi, you'll get 2% back on your Costco purchases by virtue of using that card. This holds true whether you've upgraded to the executive membership or not. But if you have an executive membership, you can stack both of these 2% offers and score a total of 4% back on the Costco items you buy. And that's a great way to offset some of the higher prices you might be paying at the store.

When will food costs start to come down?

Food has been a huge driver of higher Consumer Price Index readings in recent months, so it may be a while until grocery prices start to drop. Shopping at Costco is a great way to save money in the course of feeding your family, though. And if you combine an executive membership with a credit card that gives you 2% cash back on grocery purchases -- whether it's the Costco Anywhere Visa® Card by Citi or another card -- you might benefit financially at a time when it's gotten so unbelievably expensive to buy food.