Prices Going Up Across The Board For Consumers

By: Shannon Kantner Email
By: Shannon Kantner Email

Don't like your grocery bill? Blame mother nature.

"All of the food prices that are expected to rise in 2013 are affected by the drought," Michigan State University Professor of Economics Charles Ballard said.

When there's little rain, there's little grain. The USDA estimates cereal and bakery product prices will rise about 3 percent, and much of the food pyramid will also see a price jump.

"Beef, dairy, and poultry, the things where grains feed into the animals," Ballard said.

Those items will go up about 4 percent. High copper prices could mean more expensive kitchen appliances, plus pricier alcohol and candy because of the equipment used to make them. The Michigan Retailers Association said there's a bright side for shoppers though.

"They'll put some other things on sale and shift the purchases over to that, or they'll bring in some other kind of alternate product or merchandise or food and try to help with that," Senior Vice President of the Michigan Retailers Association Tom Scott said.

Scott said the price hikes are no different than other years, but consumers know how to get around them even better now.

"I do online couponing, I usually save about $15-20 a week," shopper Terry Lasky said.

Websites like Groupon could start offering even more daily deals, though "free shipping" could become scarce with online purchases.

"That would show up not in you sticker price, but in the total amount that you pay for the good to have it delivered to your home," Ballard said.

iPhone 5 users can expect to pay more for accessories compared to people using earlier or different models. All of the iPhone models had at least one thing in common so far: the charger cord, one-size fits all devices. But the 5 introduced a new connector size that's not compatible with any previous products, so it's premium pricing for iPhone 5 cords and cases right now.

Experts say this year's increases aren't out of the ordinary, but they can't predict everything.

"If there's a war, if there's an earthquake, if there's something, those can change the picture very quickly," Ballard said. "Sure we have a good idea, but people should prepare for the unexpected because the unexpected does happen."

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  • by Anonymous on Jan 14, 2013 at 01:21 AM
    It is a preemptive strike for those lawmakers who want to raise minimum wage and to counter the cost of the affordable care act. Both of which occured when you have one party controlling all aspects of elected government.
  • by Pat Location: Lansing on Jan 9, 2013 at 12:45 AM
    Gosh James, I hate to burst your bubble. I also do a little couponing and save a few bucks here & there. I only cut out (or print from an online site) coupons for the exact products I already use and then wait for them to go on sale. I can usually get certain products (soap, shampoo, soup, etc.,) always on sale because they last long enough. And, a couple weeks ago, I had a coupon that I didn't realize was expired until I was checking out and the gal said "that's ok!" and made it work. I didn't know they could do that! I have 2 grocery stores that switch off and buy certain things at each one either because the other store doesn't carry the item or because one store has better price or quality (usually on produce) than the other. Also, I buy a few things online and it doesn't take as long to shop a few sites for pricing as it does to find it (or not if they are out or don't carry it) in the store. Then, I can pick the best price with or without shipping and I don't have to spend time carrying & loading/unloading it because it is delivered right to my door. I also buy some clothing & other items at second-hand stores partly because they are cheaper but also because I can find better quality items (especially clothes) than what is sold in stores these days. Prices fluxuate on a lot of things quite often these days but I try to not spend so much if I don't have to. Mainly, it is about being efficient, knowing the products, and staying focused. Best of luck to you.
  • by Name Location: Location on Jan 8, 2013 at 12:04 PM
    Is this a justification piece? No mention of Green Energy burning our food sorce, federal regulation, business tax, Obama healthcare tax!?!?!? Pay no attention to man behide the curtin, the Great Obumer has spoken!!!
  • by James Location: Lansing on Jan 8, 2013 at 04:15 AM
    The real question is, how much money did you waste in order to "save" a measly $15-$20?? Funny how people spend a ton of money on brand name products they don't even need, simply because there is a coupon for it. Oh and for you morons who fall for the free shipping scheme.. What a joke!! Are people really that stupid to not realize that companies simply raise the prices of their products and use "free shipping" as a way to make you believe you are saving money? Before jumping on a product because of free shipping, you should first ask yourself if you really need that product, and if so, comparison shop and find the best deal instead. There is no such thing as a "sale". If you are spending money, you are spending money, and too many of us spend on things we don't need, simply because we are tricked into thinking we are "saving money"..Sorry to ruin your day folks, but the bottom line is, for every coupon that you use, you are spending money, not saving money.
  • by Heywood Location: Location on Jan 8, 2013 at 02:48 AM
    ...but always be ready for the unexpected, because we could decide to hike prices at any time!
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