10 Things That Will Cost More This Year and a Few Things That Will Cost Less

It's no secret that your dollar doesn't go as far as it used to. With gas prices quickly skyrocketing toward $5 per gallon is it any wonder that the cost of most consumer goods has increased as well? With the current unrest in the Middle East it doesn't look like shoppers will be getting relief any time soon from manufacturers who pass on their increased transportation expenses to the to us at the supermarket and stores like Walmart and Target. While 2011 will see an increase in most consumable goods we will also see an increase in travel expenses, automobile expenses, clothing, and recreational expenditures as well as a myriad of other things. Here is a list of 10 things that will cost more in the upcoming year as well as a few things that will see a drop in cost.

1. Corn-According to the USDA he cost of corn has risen steadily during the past year due to an increased demand for ethanol products, economic growth in developing countries, and tight global grain supplies. Corn is also used in feed for animals like cows, pigs, and chickens. Farmers and processed food producers are all competing for the same grain thereby driving the price of corn higher and higher. Manufacturers pass on the increase to consumers through either raising the prices of their goods or charging the same price for a smaller package.
2. Sugar- The cost of sugar has also increased doubling in just the past two years helping to raise the cost of sweetened groceries. With the increase in sugar prices I have to wonder if cereal manufacturers are actually trying to make their products more healthy by decreasing the amount of sugar in them or if they are just trying to save a buck.
3. The Dollar Menu- The dollar menu is quickly becoming a thing of the past. Fast food restaurants like McDonald and Taco Bell have already begun to increase the prices of their dollar menu items by as much as 50% and it won't be long before other quick stops will follow their lead.
4. Postage- In 2001 it cost just 33 cents to mail a letter in the Continental United States. In 2011 the cost for mailing the same envelope is 44 cents. If the post office has their way that amount will increase to help cover their mounting expenses including retiree health insurance benefits.
5. Airfare- The cost of flying anywhere is increasing. The average fair for flying on United Airlines has risen over 25% from a year ago and the cost of flying Southwest has increased 15%. The reason for the hikes? The higher cost for fuel coupled with a decreased flight schedule. Look for airlines to get more creative in their optional charges as well. Things like carry-ons charges, food, beverages, headsets, and blankets are all expected to increase.
6. Clothing-The cost of cotton is currently 80% higher than in was in 2010 due to a global shortage. The increase will result in at least a 15% hike in the cost of clothing for the summer. Clothing isn't the only cotton good that will be effected bedding and home furnishings will also see a price increase.
7. Cable Television-Direct TV customers saw a rate increase of over $5 per month beginning last February and it won't be long before Time Warner Customers see an increase of 7%. Dish Network customers be ready to pay 12% more.
8. NetFlix- Home delivery of Netflix DVD's will be more expensive for new and existing customers. Service costs will rise from $8.99 to $9.99 and $13.99 to $14.99.
9. Movie Date-The cost of going to the movies will rise significantly in 2011. Movie executives are losing a ton of money due to increased pirating and movies streaming on the internet. They need to recoup their costs so they are passing their losses onto consumers. Gone are the days of being able to go to the movies on a date night for $20. With the cost of tickets, popcorn, and a drink your average date will set you back between $35 and $40.
10. Chocolate-Say it ain't so...but unfortunately it is. With a huge increase in the cost of both cocoa and sugar manufacturers are planning to charge more for chocolate. Hershey's is planning a 9.6% increase across the board for their products and expect other chocolate producers to follow suit.

The most significant drops in prices this year will be in the area of consumer electronics.

1. Blue Ray Players-The cost of blue ray players has dropped significantly and will continue to plummet in the upcoming year. Be prepared to spend $39 for a player that would have cost $80 just 2 years ago.
2. WII System Bundles-I am so excited about the drop in prices for the Wii. You will be able to get the same system that once would have set you back almost $300 for just $99. What a bargain.
3. HDTV's-Just 2 years ago a 55in HDTV would have cost almost $1200. In 2011 be prepared to pay just $600 for the same television!