(CNN) It's known for its $1 price tag for all products — but not anymore.

The bargain chain dollar tree is raising its prices for the first time in three decades, and suprisingly it's not due to inflation.

By the beginning of 2022, items will be $1.25.

Dollar Tree says the price hike will give them more flexibility to bring back customer favorites and also introduce new items.

The company also saying the increase will help with freight and distribution costs as well as wage increases.

Dollar tree has sold products for a buck for 35-years.

It was the last of the major dollar store chains to sell everything for a dollar.