10 Things You'll Be Paying More For Soon

10 things you'll be paying more for soon



1. Coffee
The price of coffee futures recently hit a 13-year high, which drove up the price of a cup of Joe at places like Starbucks. Blame bad weather in South America and low U.S. stockpiles of coffee beans.

Coffee from Folgers, Dunkin' Donuts and Millstone already cost an average of 9% more. Kraft Foods raised prices on Maxwell House Coffee and Yuban coffee products by about 9% in September, translating into a price hike of 5 to 30 cents per pound of ground coffee and an increase of 2.5 cents per ounce for instant coffee.

And prices on single-serve K-cups -- sold as Tully's Coffee, Timothy's Coffee, Newman's Own Organics, Caribou Coffee and other Green Mountain Coffee brands -- will rise 10% to 15%, starting Oct. 11.

2. Cotton clothing
Again, blame the weather in part for this increase. A drought in China is damaging cotton crops there, causing the world's largest cotton producer and consumer to increase prices. Another major cotton producer, Pakistan, was devastated by floods, and another, India, is restricting its exports.

All that should add up to another $2 on the $12 t-shirt you planned to buy next year, reports CNN Money, along with higher prices for jeans. With 80% of U.S. cotton exported, it may be good news for U.S. cotton farmers, who are at an advantage compared to their competitors in the far East. For consumers, maybe it's time for a polyester revival?

3. Health insurance
In what the New York Times called a "deflationary apocalypse," medical care prices fell in July for the first time in 35 years. But that doesn't mean health premiums are dropping. Workers are paying more of their health care costs as businesses look to cut costs. The average employee contribution toward premiums for family coverage climbed 14% this year to nearly $4,000, according to a report by the Kaiser Family Foundation and the Health Research and Educational Trust. Contributions for single coverage grew 15%.

4. Postage
You've got to give the United States Postal Service some credit for at least being creative while raising prices, or making "price changes," as it calls them. The USPS is recommending a 2 cent increase (about 5%) on a first-class stamp to 46 cents beginning next year and buyers will see a new "Forever" stamp coming out in October. Out with the Liberty Bell and in with the evergreen trees on the new "Forever" stamps going on sale in October for 44 cents each. They are valid literally forever.

The proposed price increase starts Jan. 2, 2011, giving people a few months to stock up on 44-cent stamps. It's the first stamp price increase in almost two years, so it's not like grandma has been paying more each year to mail you that birthday card. Along with first-class stamps, other USPS services will increase in January, including the price to mail a postcard, first-class package, and periodicals.

5. Miami Heat games
Variable or "dynamic" pricing is popular in Major League Baseball, and it's expanding to the NBA whenever LeBron James and company come to town. The New York Knicks and the New Jersey Nets are charging three to four times more for games against the Miami Heat, according to a New York Post story.

The same Knicks seat against Atlanta in November that costs $34.50 goes up to $129.50 on Dec. 27 when the home team plays Miami. Knicks tickets for the Los Angeles Lakers and Boston Celtics also demand higher prices than other games. An NBA spokesman told the paper that most teams are experimenting with variable pricing. Prices on football tickets also went up this year.

6. Bacon
The price of pork bellies -- from which bacon is cut -- jumped to an all-time high of $1.42 a pound, soaring more than 200% from a year ago, according to a CNN Money . Retail prices are up nearly 16% over the past few months -- from about $3.64 per pound in April to $4.21 in July -- according to the Department of Agriculture.

Bringing home the bacon is more expensive because there is less bacon to be had. After corn prices soared in 2008, livestock producers cut their inventory of animals ready to slaughter, which led to a near doubling of hog prices in the summer 2009. The beef industry is experiencing the same problem, which could lead to higher prices in the beef section of the supermarket.

7. Gold
Known as a safe-haven when times are tough, gold recently sold at $1,300 an ounce, continuing a recent record-breaking run. Gold is seen as an attractive investment when the dollar weakens and the financial markets slide. Gold has become so popular that the U.S. Mint has run out of the 1-ounce, 24-karat American Buffalo bullion coins -- the purest gold coins offered by the Mint.

Since the recession began there have been plenty of outfits (both legit and not so legit) offering consumers money for their old gold jewelry and coins. Consumers willing to let go of some gold could stand to make a profit. There are plenty of ways to sell gold; just be sure you're getting the best price.

8. Utility bills
The latest increase in the Labor Department's Producer Price Index , which tracks the change in the average price paid to manufacturers for goods, was attributed to a 2.2% increase in energy prices.

Electricity and natural gas prices are expected to continue to climb in 2011, according to U.S. Energy Information Administration. Maybe it's time to think about getting a solar charger for the iPad and other gadgets sucking power at home.

9. Home prices
The housing market may not be as hot as they were before the recession, but home prices are indeed climbing. According to the Standard & Poor/Case-Shiller national home price index, second quarter home prices in the 20 metro areas that it tracks were up 3.2% in July compared to where they were in July 2009. Of course, we have to put that in perspective: home prices are still down 27% since July 2006.


10. Airline tickets
Airlines have raised their fees by as much as 50% from a year ago, and that's just the beginning. Fees have increased so dramatically it's difficult to determine just how much more ticket prices have increased.

With fewer planes flying, and thus fewer seats, airline ticket prices are projected to increase this fall and winter and airline experts are recommending booking soon for holiday travel. If you do pay more for an airline seat for Thanksgiving or Christmas, save some money by packing light and bringing your own snacks onto the plane.

See full article from WalletPop: http://srph.it/938t1e


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Follow up on NO#4


Postal Service denied rate hike

NEW YORK (CNNMoney.com) -- Christmas is not coming early this year for the U.S. Postal Service, after regulators denied a request Thursday that would have raised the price of a first-class stamp by 2 cents, to 46 cents.

The Postal Service argued that it needed the hike in order to cover lost revenue from a decrease in mail volume, stemming from the economic recession.

While the Postal Regulatory Commission agreed with USPS' argument, they denied the request, saying that the rate hike was an attempt to address long-term structural problems not caused by the recent recession.

The committee wrote in its unanimous decision that the "Postal Service has failed to meet its burden under the law, and the Commission is unanimous in denying its request for an exigent rate increase."

While USPS was able to demonstrate that the recession created the kind of "extraordinary or exceptional" circumstances that would merit the proposed 5.6% average increase on mail costs -- the requested increase was due to retiree benefits.

"The documentation provided by the Postal Service demonstrated that the primary cause of the liquidity crisis was structural, and related to an overly ambitious requirement for the Postal Service to pre-fund its future retiree health benefit premiums," the committee said.

Postal rate hikes are usually capped at the rate of inflation. This is the first time USPS has requested a demand for a price increase, an action that is allowed under the 2006 Postal law.
0:00 /2:26USPS Postmaster: We will survive

But as the committee noted, the Postal Service reduced costs by $6 billion in 2009 -- a sign that the price cap is forcing the organization to improve efficiency.

Postmaster General John E. Potter said the ruling was a disappointment, and that it would require more study.

"We are disappointed to learn that the Postal Regulatory Commission has denied our price filing. But we are encouraged by their acknowledgment and understanding of the larger financial risk we face, through the mandated pre-funding of Retiree Health Benefits," Potter said in a statement.

Meanwhile, business groups long opposed to the rate hike cheered the decision.

"The PRC today has helped countless businesses stay competitive and saved tens of thousands of jobs," said Affordable Mail Alliance spokesman Tony Conway. "The Commissioners recognized that imposing an additional tax on Postal Service customers is not the way to address its financial troubles." To top of page

More @ http://money.cnn.com/2010/09/30/news/economy/postal_rate_announcement/index.htm