CHICAGO (CBS) – It seems like everything is going to cost more in 2011. And with the holidays in the rearview mirror, you can expect some sticker shock at the store, too. CBS 2’s Susan Carlson takes a look at what you can expect to pay more for in 2011.
“I’m just amazed at all the sales that are going on right now,” said one shopper.
Those deals may not last long.
Bad weather in India, Pakistan and China destroyed cotton fields and reduced supply.
“Cotton is up 70 percent in the last year, which is phenomenal,” said Peter Cohan, business professor at Babson College.
Jeans, T-shirts, and sweaters are all made of cotton.
Cohan says many manufacturers will more than likely pass on their higher costs to consumers.
“I think they’re all going to raise their prices in the spring because that’s when China expects to raise their prices at least an additional 30 percent,” Cohan said.
If you don’t see a higher price in the store, it may be because manufacturers have switched from cotton to similar feeling — but cheaper — bamboo.
They may also substitute a blend of cotton and polyester. Or they may cut back on zippers, buttons and trim.
Prices are also expected to go up at the grocery store. The recent cold snap in Florida may soon make tomatoes and lettuce here more expensive.
And, that’s not all. ConAgra, which makes products like popcorn, frozen dinners and hot chocolate, says it will raise prices in 2011.
The same news from General Mills. You’ll pay more for its baking products, snacks and frozen vegetables by February.
Why? Prices for ingredients like cocoa and wheat are higher.
Economic analysts say it also costs more to ship food to stores.
“Oil demand worldwide is now back to pre-recession type levels,” said Morningstar Economic Analyst Bob Johnson.
Higher fuel prices could lead to fare increases by airlines, and are already factoring into FedEx and UPS raising shipping rates on January 1.
And, if you think the price you pay at the pump is high now, just wait.
“I would look for the price of a barrel of oil to move up towards $100, and gasoline to move into the $3.50 to $4 range in the year ahead,” said Johnson.
There may be one bright spot, depending on Mother Nature, of course.
“Natural gas that we’re using to heat our homes, I think the prices this year will be lower again than they were last year,” Johnson said.
Experts say retailers and manufacturers have to be careful, because consumers have become conditioned to look for deals.
They’ll either buy something less expensive or not buy the more expensive item at all.
For a list of the 20 things that will be more expensive in 2011, click here.