It’s not your imagination, folks! The prices of some items are already up. And many others are expected to be priced almost out of the reach of some people.
Due to the ongoing global coronavirus pandemic, the raw material for the various industries is short and there are disruptions in various supply chains.
The result is demand becoming higher than supply; therefore, prices of certain goods and services rise. Continue reading as we examine what you’ll be paying more for very soon if you are not already.
Gadgets like tablets, webcams and computers are some of the first sets of items to go short on supply. With the advent of virtual schooling and work globally, this was bound to happen, as these gadgets become essential to work.
Tech tools and high-end electronics are mined in one part of the world and assembled in another. Various parts are sourced through different countries. Considering the long supply line, if there is any shortage within that system, prices rise.
After two months of falling prices, in December, gas prices rose by 8.4%. Now that people are optimistic about the prospect of a curing vaccine, life is slowly going back to normal. People are going back to work with their personal transport instead of taking public transportation.
As society uses their vehicles more, demand for gas rises. Wall Street believes that prices will rally in 2021 compared to 2020, and traders are also optimistic that they will recoup some losses and business will go back to normal.
Food prices have never been so high in six years! Be it as it may that some foods are in short supply, grocers face added expenses to keep their customers safe while shopping through the pandemic. They also lose revenue when only a small number of shoppers can be in the store at a time.
They have to fork out money to pay extra staff to deal with sanitation. So, expect higher prices as store owners try to recoup their money and stay afloat. Foods in restaurants will also become more expensive. Restaurants have taken a direct hit in this pandemic and will quite likely up their prices to compensate.
7. Exercise Equipment for the Home
In the third quarter of 2020, gym equipment sales for the home almost doubled. With the closing of gyms, the demand for treadmills, exercise bikes and rowing machines surged.
This surge has not died down one bit. Demand is getting greater and greater. There are record sales also in outdoor equipment, like bicycles, trampoline and golf equipment. So, high demand and low supply are sending up the price for you to sweat!
6. Decor and Furniture
Nesting at home requires some home comforts and functionality as people wait out the pandemic. Being in your home so much may have made you realize that you’re in need of some home improvements.
Home decor and furniture are in high demand, and supply is short, driving up prices. Experts expect the furniture industry to grow by 4% this year as demand continues.
Wedding planners, photographers, musicians, venue owners, florists, and caterers are just some of the different businesses that depend on weddings and other events for income.
Everyone planning for a 2020 wedding had their dreams crushed. With the ban on large gatherings, the $50 billion industry is actively on hold–waiting to exhale.
Restrictions are easing now in many areas, however. With the anticipation of the vaccine for the populace, weddings are being rescheduled for this year, going into 2022.
The Wedding Report announced that 650,000 more weddings than last year are expected to take place this year. Prices are rising as the demand in the industry picks up.
4. Video Games and Recreation
The video game industry broke new records in 2020! So many gamers are glued to the couch as they engage in Mindcraft, Freefire, Dream League, etc. $57 million were spent on consoles and video games in 2020, a 27% increase from 2019.
If people are not watching video games, they’re watching Hulu, Disney+ or Netflix. The demand is so high for recreational gadgets that retailers increase their content prices to make an added buck! Doesn’t anybody read anymore?
3. Your Energy Bills
With most people being at home throughout this pandemic, you can assume that the lights in every household are remaining on more than ever! Especially with the kids doing virtual schooling and parents working from home. The heater and air conditioner are also likely on full blast, depending on which coast you reside.
According to Energy Information Administration, demand will increase by 5% this year– for both heaters and air conditioners. And of course, that will drive demand and increase prices.
Clothing sales fell dramatically by 12.4% in 2020, and no wonder! The world is virtually at home in pajamas and tee shirts. The welcome news is that the manufacturers are responding to the times.
The present desire for loungewear is not lost on them. They are now creating innovative “athleisure” garb, and spending is up by 11%.
The sector of formal wear, however, took a beating. Retailers are now strategizing how to recoup their losses as people start going out and back to work. Formal wear has gone up 1.4% since December.
1. Your Mail
The US Postal Service has been struggling financially for years. Since the advent of technology. Last November, they announced price increases which took effect on Jan. 24, 2021.
All stamps have increased by a penny, except for the Forever stamp, which remains at .55 cents per stamp. Other services, including Priority Mail and Media Mail, have seen larger increases.