With every passing year, we all know that inflation goes up and stuff costs more and more. I mean, penny candy is now like five cents, right? Anyway, I digress.
Even with inflation, here are a few things that you need to pay close attention to and even budget for because these will be among the highest price increases in 2017.
COFFEE
Uh oh, say it ain’t so! Consumers across the globe are drinking more caffeine, and that demand is pushing prices to all-time highs. So don’t be surprised when your favorite morning up costs 10-14% higher this year. Those prices are unlikely to fall soon, given that consumption has exceeded production for the past two years
HEALTH INSURANCE
Premiums and deductibles for health insurance are going up for both those who buy their insurance through the public exchanges and those who get their insurance through work. Exchange premiums are rising an average of 25 percent, and employer-provided insurance is going up between 10 percent and 24 percent. There are vouchers available for those who qualify to help lower the out-of-pocket amount.
OLIVE OIL
The U.S. gets most of its olive oil from Italy, where pests and weather decreased olive oil production this year by as much as half, and Spain, which increased olive oil production, but not enough to meet global demand. After a Greek olive oil boom in 2016, Greece also is expecting a smaller olive oil harvest because of weather conditions. The overall shortage means that olive oil prices are expected to increase this year.
BRAND-NAME PRESCRIPTION DRUGS
Here we go. While price increases are occurring for all brand-name drugs, the hikes in specialty drugs are driving the trend. They’re projected to increase 18.7 percent this year.
COCONUT PRODUCTS
While the popularity of coconut products like coconut water, coconut milk, and coconut oil has increased, the number of Caribbean coconut plantations has decreased by 17% since 1994 because of drought, storms, and disease, according to the U.N.’s Food and Agriculture Organization. A recent Bloomberg article noted that coconut oil prices have already increased by 50% in the past year, and a impending coconut shortage will spike the prices of your favorite coconut products even more.
CAR INSURANCE
As low gas and a strong economy has more people driving, the likelihood of getting into an accident has also risen, pushing up the cost of auto insurance this year by nearly 10 percent. Those factors aren’t likely to change next year, which means insurance costs should continue to rise.
LOANS
Expectations that the Federal Reserve will finally resume raising interest rates, combined with an economic plan from President-elect Donald Trump that includes less regulation and lots of infrastructure spending, has economists at Deusche Bank projecting rate increases. Interest rates for short-term Treasuries shot up after Trump’s election, selling at their highest level in eight years.
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