Get ready to pay more this year for some everyday items, but also major purchases. Here’s what’s costing you more this year, and the most likely reasons why.
- Medical Insurance: Premiums and deductibles for health insurance are going up for those who buy their insurance through government health marketplaces (a.k.a. state-sponsored public exchanges). But they're not alone. Your health insurance provided by your employer is going up, too. Exchange premiums are rising an average of 25 percent, and employer-provided insurance is going up between 10 percent and 24 percent.
- Drugs: The cost for prescription drugs is projected to increase 18.7 percent next year (after growing 18.9 percent this year), according to HR consultancy Segal.
- Loans: Expectations that the Federal Reserve will finally resume raising interest rates, combined with an economic plan from President Donald Trump, that includes less regulation and lots of infrastructure spending, has economists at Deutsche Bank projecting rate increases. What this means is that it will cost you more to borrow money for major purchases. Expect to pay more on your loan's interest rates when buying a car, home, or perhaps even when financing your education with student loans. You'll especially pay more for credit card purchases and debt, as those APRs, too, will rise.
- Public and Private College Education: The average published tuition and fees for those attending in-state, four-year public college in the 2016 and 2017 school years increased 2.4 percent before inflation, to $9,650. The rates for out-of-state students and those attending private college went up 3.6 percent to $24,930 and $33,480, respectively.
- Coffee: Demand for your morning cuppa continues to drive prices higher.
- Car insurance: Low gas and more drivers on the roads means higher chances for accidents.
- Uncertain? Travel: According to MSN, North American flights will go up 3.7%. But according to the Wall Street Journal, a report from Expedia and Airlines Reporting Corp. say 2017 is expected to see lower fares and more flights again. Other forecasts from travel management firms predict airfares about the same as 2016. Another development of 2017 is that the lowest price for many flights often won’t be the best price for many travelers. You’ll have to shop more carefully to avoid getting burned by fees and restrictions.