Ruth to the Rescue helps make 2013 price predictions
Updated On: Jan 02 2013 06:37:01 PM EST
If you're working on your 2013 budget, it helps to know which prices are likely to go up.
Ruth to the Rescue found some predictions for higher prices on some everyday items, and one once in a lifetime expense. When we spoke with shoppers at the Holiday Market in Royal Oak, we found shoppers ready to work around the price increases.
"Well, you gotta eat, so you have to make adjustments other places," said Lynn Hipp, who also lives in Royal Oak. "If it was going up 10% it would really bum me out, but 4%? I also feel bad for the farmer too."
The USDA expects prices on meat, poultry, and dairy to go up 4 percent. Cereal and baked good could be up close to 3 percent.
"We had a drought, corn crop was down, wheat crop was down. Bread is made out of wheat, we feed our animals corn," said grocer Dick Rinehart.
Last year's drought isn't the only factor getting the blame. Another economic expert says global demand is also affecting prices.
"More people wanting the same basic amount of resources that the world can provide and so that's pushing commodity prices up long run," said economist Dr. Logan Kelly.
Shoppers say they can cope with the increase for now.
"You tend to look for deals a little bit more. They might have a special on meat on a certain day, so you'd come on that day," said Gordon Ross, of Ferndale.
For the final word on higher food prices, we turn to a shopper, who credits her father for a lesson she learned.
"Well, I don't want the prices to go up." said Elizabeth Terry, of Detroit. "But at my age, my father always said that he will always eat whatever he wants at this particular stage. So at 91, I think I will do the same thing."
College Costs Up
The higher cost of college tuition is a little tougher to swallow. The College Board Advocacy and Policy Center says in-state tuition will rise almost five percent.
"It's much too high, something has to be done to get those costs down," said Chuck Veeser, of Midland.
Another shopper we asked about college costs agreed, and he blames the easy access to student loans.
"If there weren't' student loans at all and people had to pay out of their pocket. I think the prices would be a whole lot lower."
Finally, one other area where you could see higher prices: delivery costs. According to Deal news shipping costs will rise at both UPS and FedEx, probably 4.5 to 5 percent. Health care premiums are could jump 6 percent, according to some estimates.