Price Check: Everything's going up
Tue, 15 Feb 2011 20:26:32 GMT —
For the past couple weeks, we've done a series of consumer reports, noting an increase in certain products.
Since then, we've seen gas inch up to $3 a gallon and copper has now hit a 40 year high. Now most economists are saying to expect an across the board increase for just about everything we consumers buy.
Either way you slice it, it's not great news. After summer, most people will likely be paying more for everything. All consumer goods, including foods and manufactured products are getting ready for an increase.
Prices for corn, sugar, wheat, beef, pork and coffee are soaring. On Monday we also told you of utility increases, as Xcel Energy moves forward with their most recent rate increase.
Economists say for the last year or so, producers and retailers have been absorbing their increased costs, believing the depressed economy could not handle major increases.
Now that the economy is starting to rebound, they say they can't hold off any longer.
"Is there going to be a greater effort by the producers to pass their resource costs along? It's a pretty safe prediction: everything's going to cost more, the trend of prices is they're going to go up in almost all cases," said John Robertson an Amarillo College Instructor.
For consumers like Julia Stevens, it's bad news. With a family at home and trying to continue her education, it's going to mean some tough choices.
"It's going to make things a lot tougher, a lot harder. I'm a full time student, my husband's on a fixed income, and it's going to be bad. Scary. Everything's too expensive. A gallon of milk is more than a gallon of gas. When you have kids, that's just crazy."
So what's the bottom line on the bottom line? Food is expected to go up between 5 and 10 percent, while products using cotton are predicted to see increases up to 30 percent. Cotton prices are near their highest level in more than a decade. Iron ore used for steel, is also gaining ground with extremely high prices.
According to Robertson, "I think you'd be wise to expect price increases, to try and adjust your family budget if possible. Most of us aren't going to be able to adjust our income, we're at the mercy of where we work."
While there's no one formula that can be plugged in to address all consumer goods, it's a pretty certain bet that whatever you pay for you'll pay more for in the months ahead.
Are you already beginning to feel the affects of products costing more? Where have you felt the biggest hit so far? Leave your comments and thought below.
If the price of basic necessities like food, clothing, and gas go up will you be forced to cut back? Vote in our web poll below.