One thing’s for sure: 2022 will cost you dearly.
In addition to inflation and ongoing supply chain problems, consumer prices are rising in almost all directions.
“I really don’t think there is a way to escape,” said Julie Ramhold, consumer analyst at DealNews.com.
But that doesn’t mean you can’t shop smart for what you need and want.
Here is a list of some of the top items that will cost more in the coming year and what you can do about it now.
For some, buying a home has been one of the pandemic’s greatest challenges, even as mortgage rates hit record lows. Unfortunately, 2022 could be another year of new highs, as house prices continue to rise two to three times faster than a year ago – in all cities, according to Selma Hepp, deputy chief economist at CoreLogic. “The expected increase in mortgage rates next year will create new problems,” she added.
Pro tip: Higher rates could help reduce demand for homes by at least a little, which could lead to less skyrocketing house prices and fewer inter-bid wars, ultimately making it easier for some home buyers to break into a home. And given the rise in rental prices, buying will still be a good option.
Grocery store in New York on December 7, 2021.
Wang Ying | Xinhua News Agency | Getty Images
Going to the grocery store will eat up your budget very quickly. It is not only basic foodstuffs such as eggs, meat and milk that are becoming more expensive; Coca-Cola and PepsiCo also announced price increases due to increased supply chain and employment issues. Even Oreo cookies, Ritz crackers and Sour Patch Kids will be more expensive in 2022, Mondelez CEO Dirk Van de Put recently told CNBC, starting with a 7% price hike earlier in the year.
Pro tip: It will be difficult to avoid being gouged over by the groceries. “Keep an eye on weekly sales and stock up when you can,” Ramhold advised. And while the coupon clipping may seem outdated, many stores have digital deals or membership discounts that will save you money. A grocery reward credit card can also help you with your weekly spending.
Americans are finally ready to say goodbye to their sweatpants, but now is not the best time to shop. While apparel sales are expected to recover fully this year and many shoppers will want to update their wardrobes in the pandemic era, supply chain pressures will intensify. retail prices increased by an average of 3.2%According to a McKinsey fashion business report, 15% of fashion executives expect prices to rise by 10% or more in 2022.
4. Heating costs.
Heating bills can give you a cold sweat this season. Nearly half of natural gas-fired households are forecast to spend 30% more than last winter’s average, according to a Winter Fuels Outlook 2021 report prepared by the US Energy Information Administration. According to the report, propane consumers will spend 54% more, while heating oil consumers may see bills rise 43% and electricity consumers are expected to spend another 6%.
Pro tip: Consider doing an energy audit at home to identify and fix potential leaks and find areas for improvement, such as sealing drafts on windows to begin with. In some states, utilities may even offer this service for free.
A gas station in Los Angeles on December 10, 2021.
FREDERICK J. BROWN | AFP | Getty Images
After gasoline prices have jumped a whopping 58.1% over the past year, it’s hard to imagine paying even more for gasoline. However, in some states, including Michigan, Indiana, Ohio, Illinois and Kentucky, gas prices are likely to rise even more “very soon”, in part due to higher wholesale prices, according to the statement. GasBuddy.com…
Pro tip: Depending on where you live, gas station prices can fluctuate a lot. Even if the difference in price per gallon doesn’t seem like a big deal, it can still be hundreds of dollars a year.
6. Dinner outside the home
Restaurants have been under pressure since the start of the pandemic, and current staffing problems won’t go away anytime soon. As a result, most of them had to raise wages in order to attract workers, in addition to paying more for food, which means that menu prices will also go up.
Pro tip: Look for weekly specials or lunch specials like a two-for-one hamburger dinner. Sometimes getting more for your money is a good way to add value even at the expense of a higher price.
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New car prices are at an all-time high, while used car and truck prices, which used to be a good way to close a deal, have led to a spike in inflation that surged 31.4% year on year, making this time especially complicated. to shop for a car.
Pro tip: You may not be able to lower the price, but dealers pay more for used cars, which means you can get more in an exchange or a below market price in a lease out.
8. Computers and electronics.
Computers, TVs, and game consoles have been hit hard by an ongoing chip shortage, which means there is much less inventory even if you’re willing to pay more, which many people are doing as it has become nearly impossible to buy a game console. during the gambling boom fueled by the pandemic.
Pro tip: Some of the best sales of the year are approaching Presidents Day and Sunday in the Super Bowl as retailers slash prices on last year’s models to make room for this year’s offerings. “Otherwise, pick up as much as you can when it’s available,” Ramhold said. It is unlikely that these prices will decline again, even when supply finally catches up with demand.
Sheltering a home has sent most people into a renovation frenzy, but even small upgrades will come at a cost. Furniture prices could rise more than 10% next year due to higher container shipping rates, according to data United Nations Conference on Trade and Development… Not to mention the cost of building materials for bigger changes.
Pro tip: Good cleaning and a fresh coat of paint can provide a much-needed boost until some of the delivery delays and supply problems disappear from these bulkier items.
10. Medical service
Paying for health care services was a problem long before the pandemic. Healthcare spending is now up 8.4% from 2020, according to the healthcare facility. indicator published by the consulting firm Milliman, making the cost of medical care unaffordable for many Americans.
Pro tip: Don’t put off going to the doctor. One way to keep costs down is to use tax-free accounts for medical expenses, specifically health savings accounts or flexible spending accounts. To be able to use the HSA, you must be in a High Deductible Health Plan, or HDHP. The premiums then go up on a tax-free basis, and you can invest that money to keep up with or beat health inflation.