RIVER FALLS, Wisc. - While the nation focuses on the macroeconomics of the looming fiscal cliff, dealnews.com has come out with its annual list of "12 things that will be more expensive in 2013."
While that may be a bit on the microeconomics side of things, some of the price increases could affect millions of Americans in a big way.
Two of the categories on the list will create a pinch for you when you head to the grocery store in 2013.
"This was a perfect storm, basically the last three years," Grocer Dick Rinehart of River Falls explained, when talking about several factors that have put food prices on the rise.
Gas prices and weather events have been troublesome in recent months.
"We had a drought. The corn crop was down and the wheat crop was down. Bread is made out of wheat and we feed our animals corn," Rinehart explained.
So the USDA expects meat, poultry and dairy to go up around 4 percent. That drain on grain will create a price increase on bakery and cereal in the 3 percent range next year.
"My first law of economics is everything affects everything," Dr. Logan Kelly said.
Kelly is the Director of the Center for Economic Research at the University of Wisconsin-River Falls. Kelly says the increase in commodities prices is partially the result of global factors.
"You're having greater demand. More people wanting the same basic amount of resources that the world can provide, so that's pushing commodity prices up in the long run," he explained.
As we sat in South Hall at UWRF, we were constantly reminded of another price increase coming next year. In-state college tuition will rise almost 5 percent, according to the College Advocacy and Policy Center. Another price hike you might notice in 2013 will be at FedEx and UPS, where shipping costs are expected to rise to 4.5 or 5 percent.
Also, according to dealnews.com, health care premiums will be on the rise at about a 6 percent rate.
So with that, we say Happy New Year. Here's to hoping you make more money in the coming 12 months. Hopefully, we can do a story in the coming days on 12 things that will be less expensive in 2013.
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