What Will Be Even More Expensive Next Year?

Although last year saw a rise in prices of numerous products, it seems that not much will change in the coming year, and life in 2022 could cost us even more.

The spike in prices of food, gas, cars, and other goods, which could continue, is mostly due to increased demand and supply chain issues. Additionally, the world continues to grapple with the pandemic, labor shortages, and problems such as chip shortages, leading to rising prices of consumer goods everywhere.

– “I really think there’s no way to escape high prices,” said Julie Ramhold, a consumer analyst at DealNews.com.

For this reason, CNBC presents a list of items that will be most affected by price increases (or continued increases) in the coming year:

1. Real Estate

Although buying a house or apartment is never a small investment, real estate prices have been rising for some time, making this purchase an even greater challenge for many. According to predictions by Selma Hepp, deputy chief economist at CoreLogic, not much will change in 2022, which could be another year of new high prices. Thus, house prices continue to rise two to three times faster than a year ago. Nevertheless, higher prices could dampen demand for homes, which could ultimately ease the situation for some buyers.

2. Food

Filling a shopping cart in supermarkets will not be easy either, as food prices will rise further. According to CNBC, in addition to the increase in ‘staple goods’ such as eggs, meat, and milk, due to supply chain issues and labor shortages, price increases have been announced by Coca-Cola and Pepsi. Products like Oreo cookies, Ritz crackers, and Sour Patch Kids will also become more expensive. Dirk Van de Put, CEO of Mondelez, recently stated to CNBC that at the beginning of this year, he would raise the prices of his products by about seven percent.

3. Clothing

Although clothing sales are expected to fully recover this year due to numerous shoppers wanting to refresh their wardrobes after the pandemic, supply chain pressures will affect the prices of goods. According to a report by McKinsey’s ‘Business of Fashion’, retail prices could rise by an average of 3.2 percent. Additionally, as reported by CNBC, as many as 15 percent of fashion house leaders expect price increases of 10 percent or more in 2022.

4. Heating Costs

Heating bills could also have a higher number this season. According to a report from the U.S. Energy Information Administration, nearly half of households that heat with natural gas are expected to pay about 30 percent more than last winter. Additionally, propane users will see their bills increase by 54 percent, heating oil users by 43 percent, and electricity users will pay about 6 percent more.

5. Fuel

After gasoline prices soared by an incredible 58.1 percent last year, everyone hopes that prices will not rise further. However, in some states, fuel prices could rise further due to increases in wholesale prices, according to GasBuddy.com. Prices will not rise equally everywhere, so some will feel the increase more than others, explains CNBC.

6. Dining Out

Due to numerous restrictions and bans, as well as staffing issues, restaurants have been under pressure since the very beginning of the pandemic, and as things stand now, it will not be easier for them in 2022. The challenges of labor shortages are ongoing, and it is uncertain when they will end. As a result, most restaurants have had to raise wages to attract workers, and food has also become increasingly expensive, leading restaurants to pay more for supplies. Consequently, menu prices will naturally rise as well.

7. Cars

New car prices, as noted by CNBC, are higher than ever. However, while used cars and trucks were once a good alternative due to lower prices, they are now also experiencing a rise of about 31 percent year-over-year, making car purchases a particularly challenging investment.

8. Computers and Electronics

Manufacturers of computers, televisions, and video game consoles have been affected by chip shortages, and they also have much lower inventories. At the same time, demand for technology has increased during the pandemic, which is significantly impacting price increases. As CNBC explains, price increases will only stabilize once supply catches up with demand.

9. Furniture

Increased time spent at home has prompted many to renovate, which is becoming increasingly expensive. Furniture prices could rise by more than 10 percent in the coming year because, according to the United Nations Conference on Trade and Development, in addition to higher demand, this industry is also affected by high container shipping costs. Additionally, larger renovations will require accounting for higher construction material costs.

10. Healthcare

Numerous problems in the healthcare systems of many countries existed even before the pandemic. According to CNBC, healthcare costs in America are now 8.4 percent higher than in 2020. However, as the pandemic has caused significant expenses, healthcare could become more expensive in all countries.