No quarter given as US retailer Dollar Tree ups prices to 1.25

Dollar Tree said it will be raising its prices to $1.25 for the majority of its products (Rogelio V. Solis/AP)

US discount retailer Dollar Tree is raising the price of the majority of its products by 25 cents due to the rising cost of goods and freight.

The company said the reason for raising its prices to 1.25 dollars (93p) was not due to “short-term or transitory market conditions” and said the price increases were permanent.