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12 things that will cost more in 2013

Beef, chicken and cereal aren't the only items that will be more expensive. Consumers are going to feel the pain on several fronts.

By MSN Money Partner Dec 20, 2012 5:47PM

This post comes from Laura Heller at Dealnews.

 

Dealnews logoWhile we like to focus on saving money and falling prices, it's also important to recognize when certain items are becoming more expensive. And unfortunately, consumers can expect select smartphones and otehr electronics, cars and food to cost more in the coming year.

 

Image: Packaged ground beef (© Frank Bean/Uppercut RF/Getty Images)Thanks to mature technologies, a lack of innovation, higher prices for precious metals, added features and a drought, 2013 looks like it will be just a little more costly.

 

Here are 12 areas where prices will rise in the new year:

 

Cars

Gas prices may be falling, but cars that run on it are getting more expensive. Earlier this year, the Obama administration issued new standards that require automakers to improve fuel efficiency, and the cost of upgraded engines alone is driving up prices. Toyota hiked prices on its midsize Camry by roughly $175, and among best-selling luxury vehicles, the 2013 Lexus CT 200h will be almost $3,000 more than the 2012 model.

 

Food

Meat, poultry and dairy prices are all expected to rise, thanks to last summer's drought. Feed corn and grass were hurt the most, and the impact from their scarcity will soon be felt at the grocery store. Price increases will hit right along with the new year.

 

Since drought conditions forced ranchers and farmers to reduce the size of herds and flocks to combat higher feed costs, the price of beef and chicken is also slated to rise. The cost of dairy products, too, will be affected, as fewer and leaner cows produce less milk. Overall, the U.S. Department of Agriculture expects food prices to rise 3.5% to 4% in 2013.

 

Grain

Cereal and bakery product prices will rise too, as a result of the 2012 drought and lower wheat yields. Prices in this category began creeping up in October, and the USDA's Economic Research Service forecasts cereal and bakery product prices to rise 2.5% to 3.5% next year.

 

Health insurance premiums

Obamacare notwithstanding, employee health care premiums are expected to rise an average of 6% in 2013, according to Aon Hewitt, a human resource consulting firm. That amount will vary by state and type of plan, but overall, employers will face higher premiums, and the increased costs will be passed along in part to employees.

 

High-end TVs and home theater systems

While there will always be budget home entertainment options, folks who want the latest and greatest in this department will face some shockingly high price tags in 2013. According to Jeff Joseph, a spokesman for the Consumer Electronics Association, ultra-HD TVs -- which include an extremely high pixel density -- will sell for $20,000 to $25,000.

 

High-end audio manufacturers too aren't holding back, as they incorporate premium features like Apple Airplay and standard DLNA that let users control the entire system wirelessly. These features can drive up the cost of AV equipment in an instant.

 

Computers

As tablets continue to gain momentum in the consumer electronics realm, computers are returning to their original function as work-related machines -- albeit more powerful and expensive ones. According to Stephen Baker, the vice president of industry analysis at the NPD Group, Apple's new notebooks with retina displays are among the highest-priced models out there, and Microsoft's latest operating system, Windows 8, is driving the adoption of premium touchscreen PCs. (Microsoft is the publisher of MSN Money.)

 

Even geeks and gamers could see higher prices, as Intel plans to release processors that are soldered onto motherboards in 2013, rendering them un-upgradeable. This would make DIY upgrades to a desktop machine impossible, forcing the computer-savvy to opt for custom configurations from the manufacturer, which is, as a general rule, more expensive then getting a deal on the boxed CPU and upgrading it on your own.

Copper

Move over, gold, it's copper's time to shine. Copper prices could be on the rise, thanks to a move by the SEC to approve a fund to trade the metal. That fund could lead to scarcity and higher prices, as a similar move did for gold. The problem is that copper is used in plenty of consumer items, including residential water pipes, wire, pots, and kettles, as well as equipment for brewing beer, distilling liquor and making candy.

 

Smartphones

The U.S. smartphone market has long been subsidized by service providers, which offer phones at reduced prices to customers who sign of long-term contracts. In 2013, T-Mobile will eliminate the subsidy and charge full price for its phones. While there's evidence to suggest that the carrier will in turn allow users to opt for cheaper service rates -- thus saving money in the long run -- the pill of a full-price phone may be hard for many to swallow.

 

Daily deals

In spite of lots of bad press, the daily deal isn't dead yet. It will, however, continue to evolve in 2013. Too many competitors and not enough profits are combining to force these sites to focus more on product deals, led by Groupon Goods. It may become difficult to find deals on services. If you're accustomed to scoring cheap spa vouchers, for example, it may become harder to find such discounts next year, as daily deal sites will list fewer such offerings and instead opt for tangible products -- leaving you to pay full price for your indulgences.

 

College tuition

 While tuition is always rising, state schools in particular are feeling the pinch. As education costs continue to increase, many states will no longer be able to subsidize much of their students' tuition costs. Meanwhile, student aid and grants aren't rising commensurate to costs, which means university expenditures -- more administrators, new dorms and additional property -- will get passed along to students.

 

Tuition and fees for private universities aren't increasing as much in 2013 as they have in recent years, but they are expected to rise for public four-year colleges. Students can expect in-state tuition to increase 4.8% and fees to rise 3.7%, according to the College Board Advocacy & Policy Center.

 

IPhone 5 accessories

Although there have been several iterations of the iPhone at this point, one thing had remained the same for several years: the dock connector. Thus, unlike cases that are outdated with the slightest change in form factor, iPhone dock accessories remained largely universal across new models.

 

But the iPhone 5 features a radically different Lightning connector, resulting in a fleet of brand-new accessories that have no prior-generation alternatives -- which means premium prices. These higher prices debuted in late 2012, and they will continue in 2013 until manufacturers begin releasing updates to these items.

 

Shipping

While somewhat unsurprising, 2013 will see a 4.5% to 4.9% hike in shipping costs from both UPS and FedEx, the latter of which is slated to raise rates beginning Jan. 7. Higher shipping costs may affect customers who predominately shop from "independent" sellers, like those found on eBay, Etsy and the like, but the increase may also have an impact on retailers that currently offer free shipping.

 

Since merchants end up paying for the handling and delivery of orders that "ship free," the increased UPS and FedEx rates may affect the frequency of free shipping offers and threshold at which online orders receive free shipping in 2013.

 

More from Dealnews and MSN Money

252Comments
Dec 27, 2012 7:01PM
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It will take hungry people to revolt,one more summer of drought should do it.Both of these political parties need to be sent down the road.
Dec 27, 2012 2:19PM
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In 2013?? Where have you been? Certainly not to the lumber yard or hardware store.
So is that a single ground up animal in that package, or are there a bunch of them all ground together? You can keep the ground up fellow beings....

Dec 27, 2012 10:47AM
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A quick check of T-Mobile website shows that having 2 phones with the "bring your own phone (aka value) plan" is 40 dollars a month less than getting the subsidized phones from them. It would seem to indicate that paying full price for the phones would be the smart move, but here's the flaw in their thinking. Most people do not understand that you are paying for the subsidized phone in higher monthly rates.  We just upgraded to two Galaxy SIII phones (with a 2 year contract extension) for 98 bucks each through Walmart. An unlocked SIII is about  750 dollars, so buying two of those would be over 60 dollars a month over a 2 year period.  Even if the retail price dropped, they still face a problem. Knowing that their monthly bill will rise if the buy the new phones on an installment plan will make most people more likely to just keep what they have. They will have to discount the phones to sell them. I do think TMobile has a good idea, since the only reason we upgraded is because they made the phones so cheap to acquire. It will also be interesting to see how long it take TMobile to raise the cost of their "value plans". Eventually you will be paying the same as you did with a subsidized phone.
Dec 27, 2012 1:41AM
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You forgot taxes.  Up 4% for rich people and much more the poorer you are.  A shame that congress can't do the job that they were elected to do but I'm sure they will approve raises for themselves which reflect the job they are not doing.
Dec 26, 2012 11:30PM
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THE PRESENT UNITED STATE BANKING SYSTEM IS FLAWED.

THERE IS NO U.S.A .BANK ACCOUNT ON FILE WITH EXTRA MONEY.

 WHEN WE NEED MORE MONEY. THE U.S. GOVERNMENT BORROWS MONEY AT A LARGE COST.

AS A RESULT.  THE ONLY THING WE CAN DO WITH THIS PRESENT SYSTEM

OF GOVERNMENT IS TO KEEP BORROWING FOR

 PRESENT MAINTENANCE RESPONSIBILITY'S   

-----  THIS DEVALUATES OUR DOLLAR WHICH WEAKENS

AMERICAN BUYING POWER.  PLEASE WAKE SOMEBODY UP.

WE CAN'T AFFORD ---WITHOUT ECONOMIC COLLAPSE--- TO BORROW,

 FOR MORE THAN ONE OR TWO MORE CONFLICTS OF LARGE MILITARY  PROPORTION.

WE ARE DYING AS A NATION.

                      WE NEED A NATIONAL SAVINGS ACCOUNT      FOR RAINY DAY'S SO TO SPEAK.

DEBT CREATES PERSONAL AND NATIONAL WEAKNESS.

 

        

Dec 25, 2012 6:59PM
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GEE We are a right to work state now here in Michigan .. All these $7.00 an hr jobs should be flowing in real soon ?? I guess we will just have to work three of them just to get buy... Thanks to the MICHIGAN GOP who runs the Gov, house and senate.. Absolute power corrupts absolutely...
Dec 21, 2012 7:10PM
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Thanks for destroying the US dollar and the US economy, Obama.  You've done a thorough job of it.   Your socialist buds should be happy.
Dec 21, 2012 5:22PM
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Bend down and pray everything has a cost.

Dec 21, 2012 5:15PM
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The rising prices of cars is easy to avoid, buy a used car.  You can find a really nice used car for cheap and still get nice fuel mileage.

Dec 21, 2012 3:38PM
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Gold is over the top and silver took a hit some time back. Thankkfully, I have about 300 pounds of copper (minted 1982 and earlier)  cents. The long was in the sandbox insured brass (copper mixed with tin) got more expensive. I started saving my cent coins in 1982.
Dec 21, 2012 3:22PM
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Dang! I thought the world was going to end today and I wouldn't have to worry about this shite anymore.
Dec 21, 2012 3:13PM
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Seriously ...... what ISN'T going to cost more in 2013 ????????? Everything has been increasing faster than wages for years, so an article like this is worthless. The "haves" will not be bothered by all the increases, but the "have nots" will suffer. The middle class and the poor will just continue to lose ground to the rich.
Dec 21, 2012 2:35PM
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Some of the benefits of Obamacare have already kicked in:like the pre-existing condition

and the elimination of the deductible for brest examination.Those are the facts.You`ll

never hear that onFox.

Dec 21, 2012 2:31PM
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They forgot to mention the salaries of senators and congressmen that are going up dramatically due to automatic raises. Because of ALL the hard work they do ruining our country...oops, I mean running our country....
Dec 21, 2012 2:25PM
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Damn, even the local hooker is raising her rates...
Dec 21, 2012 1:44PM
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Plus wages which have remained stagnant for 30 years now are once again going to remain the same. Since jobs are hard to come by (especially good paying ones) profits are up and productivity is up but because the masses are brainwashed in believing Unions are bad, workers have no voice and the problem continues.
Dec 21, 2012 1:32PM
Dec 21, 2012 1:00PM
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there will be an "excuse" for raising the price on everything, but it all boils down to pure greed, plain and simple.  This country is going down, and there is nothing anybody can do about it as long as gas companies, insurance companies, real estate companies, and banks (few others) have control over our piece of sh*t goverment and the low life president who doesnt give a damn about this country.
Dec 21, 2012 12:57PM
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This is not a surprise, and a big contributor to increasing costs is the FEDERAL RESERVE BANK's announced continuing plan to increase the annual inflation rate by 2%.  They are now, and will continue indefinitely, printing $85 billion EACH MONTH (QE3 and QE4).  Indefinitely!  That makes every dollar in your pocket worth LESS, resulting in reduced purchasing power;  higher prices.  I dare anyone reading this to write to your elected representatives (as I have done many times), and see if they respond with willingness to address this problem.
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