1. Food
The U.S. Department of Agriculture predicts that food prices will rise about 3% in 2014. Some items will climb considerably higher though; including Chocolate, Beef, Bread & Cereal.
2. Clothing
Cotton based products will likely increase 5% to 8% in 2014. This is due to unfavorable crop conditions and the need to use the fields for other types of crops. This will most likely result in increases in all types of clothing as will have a psychological effect on Manufacturers.
3. Houses
This could be good news if you are wanting to sell. Interest rates remain relatively low and new home building is increasing. The demand for both new and previously owned homes should accelerate rather quickly and increase prices along with it. How much is hard to predict, but in the past year, home prices in Houston increased on average by 22%.
4. Automobiles
New car prices on average climbed 1.1% between 2012 and 2013. Prices will rise at least that much in 2014 and possibly more. There are an estimated 57 new “looks” that the auto industry will be unveiling this year and those new looks drive up prices. Also as demand catches up with supply; you will see fewer consumer incentives than you have seen in the last couple of years resulting in a higher bottom line.
5. Pay TV
Cable Television has increased its rates considerably in recent years. According to the Wall Street Journal the average cable bill increased from $48 in 2001 to $128 in 2011. Both DirecTV & Dish Network are raising their service fees at any moment. Customers can expect to pay between $2 to $5 more per month. The main reason is being blamed on the rising cost of content.
6. Stamps
As you have likely already heard, the price of a first-class stamp went up again! The cost of mailing a letter is now be 49 cents. This increase of 3 cents went into effect on January 26th. This is a temporary price hike, designed to last 2 years. This is designed to offset $2.8 billion in losses the U.S. Postal Service has taken, stemming from the 2008 recession.
It is always tough to see prices increasing, but try to keep in mind that it is usually a good thing for the economy. The benefit of increasing prices is that they encourage spending and economic growth. This in turn creates more jobs, and the virtuous circle continues!