A new year is quickly approaching and with the economy suffering the way it has in the past year many will be glad to see a new year arrive. However, as with all trends the economic problems of this year will flow over into the next year. 2010 has brought drought to the farmers in the United States, lower attendance to many sporting events, and many changes in banking. Each of these issues will affect the prices that consumers see in the New Year and consumers will see increases in the prices of several things in the upcoming year.
Farmers all across the United States were affected by the drought that the central United States seen in late summer and fall. Crops were affected by the strange weather that was seen throughout the States all year. This will affect the price of items that many Americans choose for breakfast such as coffee, milk, and cereal. Cereal price increases will be due to grain production not being as strong as in previous years. Chocolate prices are expected to rise too in the New Year.
Changes in the automobile industry have affected many jobs in 2010 and will continue to affect the consumer with car prices increasing in 2011. Many lines have been dropped from production and many new cars have been made to meet the increasing demand for more fuel efficient cars and trucks. Along with this increase, we will see an increase in car insurance possibly because of the increase of newer flex fuel cars being insured now by so many Americans.
There have been many changes in the banking industry as well since President Obama signed a law against fees that credit card companies and banks can charge on cards. This change will increase the fees on many debit and credit cards as the companies will have to find a way to make up the money that they have lost in those fees. Look for more cards to begin charging higher annual fees.
With so many people unemployed or taking jobs where they are earning less than half of what they were, sporting events and concerts have seen a drop in attendance as people are cutting back on the family activities that are as expensive as these items. Football tickets are expected to rise 5 percent, especially in those places where teams have built new stadiums in recent years. The cost of concert tickets and other sporting events are expected to rise too.
For several years, parents have hoped to see college costs level out or decrease. However, 2011 may be the year that parents need to talk to their children about entering a local community college for a couple of years due to the increasing tuition costs at major colleges across the country. The cost of continuing education will only climb in the New Year.
More items that we will see increase in price are airfare, health insurance, and water rates. Water rates will especially rise in the places where municipals have done major water upgrades to their systems. It seems that budgets are being cut every year for state and county departments and the downfall must be made up someplace. Water rates, like many other utilities are fees that can be raised and no one can really stop paying as these are considered necessities by most Americans. Finding a way to become more self sufficient of these utilities is an option, but not one that most would consider.
Hopefully, the New Year will also bring some lower prices in some of the things that consumers must buy or use on a regular basis or job growth will increase. A rate of living increase in wages would be helpful as many people work in jobs where raises are not given or are not given on a regular basis. In any case, I want to wish all of you a Happy New Year and we will just have to see if the New Year will bring new jobs and more income to the families in the United States.
Source: The Today Show