Despite reaching a fiscal cliff
deal that will shield 99 percent of Americans from an income tax
increase,
more than three quarters of American households will still
face higher federal tax bills in 2013. That's because legislators failed
to renew a temporary reduction in payroll taxes, worth about $1,000 to a
worker earning $50,000 a year.
But that's not the only bad news for consumers' pocketbooks.
Regardless of the tax package Congress finally cobbled together Tuesday,
a bevy of products Americans use every day are about to get pricier,
according to experts.
Here's a look at some items consumers will probably paying more for in 2013:
1. New cars: More stringent fuel-efficiency
standards are making engines more
expensive to produce, which in turn translates into costlier cars, according to consumer deals site Dealnews.
The sticker price on the Toyota Camry will go up $175 this year and
the 2013 Lexus CT 200h will be almost
$3,000 more expensive than last
year's model.
2. Groceries: Remember the drought this summer that
scorched the nation's farming regions? Thanks to the brutal dry spell,
food prices are expected to rise as much as 4 percent in 2013, the
United States Department of Agriculture says, which translates into an
extra $40 a month in food costs according to some estimates.
A scarcity of corn caused livestock feed prices to spike, forcing
farmers to cut back herd sizes to keep costs in check. With less supply
of beef, poultry, and milk-producing cows, your next visit to the
butcher's counter and dairy cooler is likely to be a bit pricier.
Cereal and other bakery products will rise, too, according to
experts. Lower wheat yields on account of the drought have crimped
supply and driven prices up. The USDA expects prices for those items to
creep up by as much as 3.5 percent in the coming year.
3. Health insurance: While increases will vary by
state and specific plan, employers will face higher insurance premiums
in 2013, with average hikes around
6 percent according to human
resources consulting firm Aon Hewitt. Those cost increases will be
passed along in part to employees, who will see more of their
paycheck--
an extra $267 a year on average--going toward health benefits.
4. High-end electronics: Gadget geeks should prepare
for some shockingly high price tags on the latest and greatest
electronics, according to the Consumer Electronics Association.
Ultra HD
TVs will sell for as much as $25,000, and advances in audio technology
such as Apple Airplay will help drive up equipment costs as well.
Laptops and tablet computers will also see price increases as Apple's
new notebooks with retina displays and Microsoft's Windows 8 operating
system fuels the adoption of premium--and expensive--touchscreen PCs.
5: College tuition: While Washington is wrangling
with fiscal woes at the federal level, states have their own issues and
it could mean deep cuts to higher education subsidies. As education
costs continue to rise, many states will no longer be able to subsidize
as much of their residents' tuition costs.
That means rising costs will get passed along to students, who could
end up paying almost 5 percent more for in-state tuition in 2013 and
almost 4 percent more in fees, according to the College Board Advocacy
& Policy Center.
6. Smartphones: Consumers have gotten used to
getting crazy deals when they sign a contract with a cell service
provider, but the era of free phones might be coming to end. In 2013,
T-Mobile will begin charging full price for its phones, according to
Dealnews. While the blow might be softened by cheaper service rates, the
higher upfront cost might be a tough pill to swallow for many
consumers.
"Most people are unaware of how much a smartphone actually costs
because they're so accustomed to the subsidized price tag that they
always see," says Lindsay Sakraida, features director at Dealnews.
Still, consumers can actually save money over the long run by
rustling up the cash to pay full price for a phone and opting for a
cheaper service plan, Sakraida says.
7. Shipping: The cost to ship packages could see an
almost 5 percent hike in 2013, with major freight companies UPS and
FedEx both planning to up prices in the new year, according to Dealnews.
That means free shipping perks from retailers could get scarcer or the
dollar-amount thresholds higher.
8. Anything made with copper: A new fund to trade
copper approved by the Securities Exchange Commission could result in a
scarcity of the metal, which could drive up prices for everything from
water pipes used in plumbing to beer and candy. Plenty of consumer items
such as pots and kettles are made from copper, as well as equipment
used to brew beer and manufacture candy. Higher prices for that
equipment could mean you'll pay more for your vices this year.
