13 things that are about to get more expensive (2023)

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Prepare to shell out even more for some of your favorite items thanks to maritime wars, labor issues and climate change.

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feel the pinch

If it looks like the pandemic is still messing with your wallet, don't get imaginative. In August, the consumer price index, which measures the cost of a "shopping cart" to the average urban consumer, showed prices rose an average of 5.3% year-on-year. That's just one of the ways city life could change after the coronavirus. Price inflation – andtip– seems to hit everything from entertainment and electronics to necessities like food, clothing and shelter.

What's behind all the high prices? The global shortage of containers has led to bidding wars to get products onto ships. Add to that a labor crunch and the result is long (and expensive) delays in transporting products from shipping ports to warehouses and ultimately to consumers' doors. "There are a lot of bottlenecks along the way," says Krishnakumar (KK) Davey, PhD, president of strategic analytics at IRI, a Chicago-based data and analytics firm. In recent days, President Joe Biden has announced agreements with the ports of Los Angeles and Long Beach - which together account for 40% of US container imports - to operate 24 hours a day to resolve these bottlenecks.

Raw material shortages and the effects of climate change often compound the supply problem. What's more, says Jennifer Christ, research manager for consumer and commercial goods at The Freedonia Group, consumers are compounding the problem by stocking up on non-perishables, even if they aren't perishable.The pandemic may have changed your priorities. "People think, 'If prices keep going up, I better buy some of these.' Also, they might be worried about going to one of these stores on a regular basis.Places where you are most likely to get the coronavirus.We've detailed the price increases below.

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computers and electronics

computers, cameras, televisions,video doorbells, kitchen utensils and even electric toothbrushes rely on microchips to function. And the world currently has a very limited supply of these microchips. When COVID-19 first hit, factories making microchips closed as orders piled up. These factories are still struggling to meet demand. It doesn't help that a Japanese microchip factory was damaged by fire and a factory in Texas temporarily closed during February's brutal storms. In Taiwan, where 63% of the world's chips are made, a severe drought has threatened chip manufacturing, which requires large amounts of water. Some big TVs cost around 30% more today than they did a year ago. Experts believe that the chip shortage could last until early 2023.

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automobiles

Cars also rely on microchips (sometimes called semiconductors) for dozens of advanced functions. But when the pandemic hit, many automakers anticipated a drop in sales and canceled microchip orders. When sales resumed, factories were unable to ramp up enough to meet demand. As a result, Ford, General Motors and other manufacturers will sell 1.5 million to 5 million fewer vehicles this year, and available vehicles will cost 7.6% more than they did a year ago.

Christ notes that with inventory so limited, the usual tactic for closing a deal — buying at the end of a month or quarter, when sales reps are trying to hit quotas — won't be effective this year. “People pay more when they need a car.” If you think a great used car is the next best thing, think again. The price of used cars increased by 31.9%, according to the CPI. The good news is that car prices start to rise at lower prices. Stocks can be replenished later this year, but the shortage will be felt at least until 2022.

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rented car

Rental cars are not immune to the COVID effect. At the beginning of the pandemic, when there was nobody on the road, car rental companies sold most of their fleets to generate revenue. With supply falling and demand rising, the average cost of renting a car last July was 73.5% higher than the year before. If you're thinking about forgoing a rental car and just using a ride-hailing service on vacation, note that Lyft and Uber also charge more. The shortage of drivers willing to risk their health indoors has driven prices up.

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Gas

Gas prices rose 42.7 percent last year, according to the CPI, with several contributing factors. At the start of the pandemic, many of the countries that produce crude oil – which is in turn used to produce gasoline – reduced production because lockdown restrictions prevented travel. "Then prices started to go up again when people started taking road trips — it seemed like a safer way to travel," says Christ. But oil producers were surprised by the resurgence in demand and raised prices to compensate for the low supply. As production slowly rises, oil-rich countries are wary of resuming pre-pandemic levels only to face another sudden drop in demand. In addition, domestic gas production was briefly disrupted when Hurricane Ida made landfall on the Gulf Coast of Louisiana in August and nine oil refineries were temporarily closed.

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Clothes

If you're reading this in your yoga pants and sweatshirt, you might be surprised to learn that apparel prices are up 4.2% compared to last August. One factor: rising cotton prices, driven in part by former President Trump's trade policy toward China, and President Biden largely resisted. Retail workers are also demanding higher wages in today's new reality. And since loungewear and athleisure are the new must-haves, their prices have risen accordingly. There was also some lag when it came to going out clothes, with prices for dresses rising 11.9%, while men paid 4.7% more for suits and jackets. Likewise, Davey says kids going back to school this fall need new clothes after a year of growth spurts, and prices have risen with them (1.4% for boys and 2.8% for girls). Here it iswhere can i sell old clothes.

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toys

Major toy makers have warned that their ability to get some of the most popular items on shelves in time for Christmas shopping will be limited. Once again, the global maritime crisis is to blame, so the makers of popular brands like LOL Surprise! and Fisher Price. Even companies that arranged to ship containers before the holiday season plan to increase prices by 5% to 10% to offset the additional shipping costs. Kids have always had crazy toy fashions and today is no exception. When the kids in your life are crushed without one (or more!)hottest christmas toys, be sure to buy in advance.

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Christmas trees

Even if you get all the toys your kids dream of, you should also have a tree to stack them. According to the American Christmas Tree Association, both live and artificial trees will be in short supply this year. Weather events such as fires and droughts in the Pacific Northwest have impacted tree plantations, while the shipping crisis could push artificial tree prices up by as much as 25%. Even ornaments and skirts to decorate the tree can be harder to find and more expensive when you do find them.

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Housing

The story behind the housing crisis - prices were 18.1% higher in August than the previous year - is similar to other categories: material shortages and working conditions led to a low inventory of homes for sale. Fortunately, the price of at least one of these materials - wood - has finally returned to normal. However, Cristo says other factors such as B. Zoning restrictions in many communities that restrict home construction are in limited supply. Plus, she says, many people who might be interested in selling are reluctant to let strangers roam their homes in the middle of a pandemic. Some analysts expect housing inflation to stabilize next summer.

For renters, here's the verdict on whetherthe rent will go down.

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Eat at home

Food prices continue to rise, with an average price increase of 3% over the same period last year. But that's not the whole story.Certain types of foods show more notable increases. Take bacon, for example. The average price is now just over $7 a pound, up more than 25% from the $5.56 price a year ago. But it's not the only protein that costs more. Both steak and eggs are seeing dramatic increases of nearly 20% or more.

Meat prices started to rise at the beginning of the pandemic, when the COVID outbreaks forced the closure of several factories. Drought raised feed prices. And the lack of competition in the industry — just four companies handle most of the meat processing in the United States — means that prices have remained high.

Washing these foods is also becoming more and more expensive. Both Coca-Cola and PepsiCo announced price increases due to labor and supply chain issues. In addition to their iconic sodas, both brands also sell popular juices, teas and water. Coffee prices are also rising due to drought and frost in Brazil, the world's largest coffee producer.

“We assume that inflation will persist in the food and hospitality sector for the next three to four quarters,” says Dr. Davey

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Eat out

Would you rather book than have dinner? Don't expect it to be cheaper. Restaurant prices are also rising, with prices averaging 4.7% higher than a year ago and 6.9% higher at “limited service” restaurants. Restaurants are feeling the same pressure on food prices as consumers are due to shipping and raw material challenges. Starbucks has reported difficulties sourcing various menu items, from flavored syrups to chai tea bags. In addition, working conditions forced the industry to raise wages. Many restaurants are also experiencing new expenses that weren't on the menu before the pandemic, such as stocking up on personal protective equipment, working with third-party delivery services and maintaining outdoor dining spaces. And with winter approaching, it can be difficult to lure guests inside, as the restaurants remain one of the fewThe best places where you are likely to get infected with coronavirus.

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medical supplies

Hospitals are paying more for supplies this year, and not just masks and gloves. Devices like cardiac defibrillators, exam tables and IV stands that rely on raw materials like metal, plastic and microchips are now scarce and cost more when they are available. Ambulances are also late. Ford Motor Co., which makes chassis for 70 percent of US ambulances, ended production at four of its plants in April due to a lack of microchips. In September, the American Ambulance Association Denver7 said that production had fallen by 30 to 50 percent.

At least one medical group in California has lobbied insurers to cover their additional costs, but insurers have backed off. It's unclear whether these costs will be passed on to consumers. "A lot of what we pay for in healthcare isn't transparent," says Christ. Meanwhile, the cost of some household products is rising. Makers of diapers, incontinence products, feminine hygiene products and, yes, toilet paper say they are raising prices to address supply chain issues.

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video games

76% of Americans spend at least some of their time playing video games, and in the first six months of 2021, the amount of money spent on video games increased by 35%. It could be that games are now attracting older players (45-64 year olds play up to 16 hours a week) because they need more disposable income to pay for their games. Nintendo and Sony have announced that they cannot produce as many Switch and PlayStation 5 consoles as they would like, respectively, due to a lack of microchips. This shortage is likely to drive up prices.

The games themselves have also become more expensive. For 15 years, the standard price for most games was $60, but Sony Playstation and Microsoft Xbox raised their pricing scheme to $70 last fall, citing higher spending as games become more popular. sophisticated. Even "retro" games - games made to be played on consoles released before the Playstation 4 and Xbox One - cost an average of 33% more than they did before the pandemic began. Even watching some favorite shows on TV will cost more as Hulu announced a $1 price increase for its streaming video service. see how you canSave money by streaming.

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books

Old-school entertainment will likely cost more, too. Publishers warn of the shortage of physical books. In the first half of 2021, book sales are up 18.5% year-over-year, with adult and young adult (YA) fiction leading the way. But publishers are struggling to produce as many books as we want to read due to paper shortages, manpower issues and delivery difficulties. If you don't want to pay pandemic prices for your fiction fix, check out these places where you can.Read books online for free.

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planning the future

Even if you manage to find (and afford) all the products you and your family will need for 2022, don't expect the supply and price issues to ease in the new year. "It seems common enough that many of these challenges will persist well into the next year," says Christ. "There is more controversy about whether it will be okay in 2023." However, it's not all bad news. Some of the positive changes that have occurred as a result of the pandemic, such as the availability of online shopping or allowing restaurants to deliver alcohol with food, are likely to continue. “If there is a non-pandemic reason, like B. Comfort that a pandemic habit still exists, people will continue to do it,” says Cristo. "Rather than making things go back to the way they were in 2019, it's more about moving forward from where we are today."

Sources:

• Krishnakumar (KK) Davey, PhD, President of Strategic Analytics at IRI, a Chicago-based data and analytics firm
• Jennifer Christ, Consumer and Commercial Goods Research Manager at The Freedonia Group
• US Bureau of Labor Statistics: Summary of the consumer price index
• US Bureau of Labor Statistics: Consumer Price Index for all urban consumers (CPI-U): US city average, by detailed spending category
• Denver7: "Global chip shortages are causing problems for first responders"

Laurie Budgar is an award-winning lifestyle, health, travel and business journalist and a regular contributor to RD.com and other national magazines and websites. Her superpower is making complex information not only easy to understand, but also vivid and engaging. Budgar is also a Board Certified Speech-Language Pathologist (MS, CCC/SLP) who has spent over a decade helping people with brain trauma, stroke, multiple sclerosis, Alzheimer's and other neurological conditions regain their speech, language, swallowing and cognitive skills. .