8 Things That Will Cost Consumers More in 2013
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.
[RELATED: Despite Deal, Most Americans Get Tax Hike]
Here’s a look at some items consumers will probably paying more for in 2013:
1. New cars: More stringent fuel-efficiency standards enacted by the Obama administration 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.
[READ: Fiscal Cliff Bill Loaded With Pork]
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.