Inflation hits Amazon: Price of Prime memberships going up

Amazon announced Thursday that it would be boosting the price of its Prime membership for U.S. customers, citing rising costs as the reason behind the decision.

In a letter to investors outlining its fourth quarter earnings, the company stated that increased wage and transportation costs along with its expansion of membership benefits has led the online retail giant to increase its Prime fees for the first time since 2018.

Monthly Prime memberships will go from $12.99 to $14.99, and annual memberships will be hiked to $139 from the current $119. The price change will go into effect for new members starting Feb. 18, and existing members will see their fees go up on the date of their next renewal after March 25.

For the quarter ending Dec. 31, Amazon blew earnings per share projections out of the water. Wall Street had expected EPS of $3.44, but the retailer delivered a staggering $27.75. Investors appeared to like the results, as the company's stock shot up more than 18% in after-hours trading following the report.