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Inflation numbers may be down, but many products aren’t getting any cheaper at U.S. stores. A perfect storm of supply chain issues, shortages, and slower production are contributing to a new wave of price increases. In fact, several household items are set to double in price this fall, according to a new GOBankingRates analysis, and the changes may shock many Americans who haven’t seen costs going up this fast in their lifetime.
For example, Publishers around the globe are preparing for worst-case scenarios amid the soaring cost and scarcity of paper that threatens the future of their print newspapers and magazines. In the UK, Newsprint was priced at around 360 pounds ($426) per ton in the first quarter of 2023; now the price has almost doubled to around £710 ($841), said Rick Stunt, group paper director at DMG media, which prints The Daily Mail and dozens of regional titles.
It represents a 40% premium on the historic high of 510 pounds per ton, he said. In the US, the price has risen by a similar percentage, to around $800 a ton, according to Stunt. “These are big increases. We don’t usually get this over an 18-month period,” said Stunt. “In the past, really big increases were about 20 to 25%.”
As the world became more digital, reduced demand for paper in the past three decades led paper mills across the world to shut down. Then the pandemic broke out and the labor shortages and supply chain disruptions followed. Added to an already stressed market, demand for cardboard packages soared amid the e-commerce boom.
This year, ballooning energy costs will make an already bad situation worse for paper supply. “From an industry perspective it’s a disaster because you’ve got no choice but to reduce the amount of pages you print, choose to increase your cover price, or a combination thereof — and that will reduce demand,” said an executive at the New York Times, who said prices will go up between 35% and 40%.
Meanwhile, the cost of stationery supplies is about to go through a seasonal shift as we approach the back-to-school season. The shortage of paper can push the cost of some products — including books, notebooks, writing pads, envelopes, and more, — up by 50%, the data showed.
Other items such as pens and markers are going up more slowly, but reduced plastic production can be a contributing factor to higher prices. At the same time, a shortage of plastic is being a catastrophe for toy manufacturers, who should already be shipping their products ahead of the holiday shopping season.
Delivery delays are expected, and the category of toys and games is at risk of facing shortages during the busiest shopping season of the year. In other words, many popular products amongst kids will be harder to find and may cost from 17% to a whopping 68% more, according to the analysts.
The fact the retailers have sharply reduced inventory may collide with seasonal shifts in consumer demand. That means product stockouts will become more frequent from now on, and some cheap everyday essentials are likely to shoot up in price as well. That’s why today, we decided to list which household items going to become more expensive in the coming months.
Here’s the list…
- Household Cleaning Products
- Olives and Pickles
- Roasted Coffee
- Frozen Bakery Products
- Household Tools and Hardware Supplies
- Public Transportation Tickets
- Delivery Services
- Propane, Kerosene, and Firewood
- Salad Dressing
- Utility Services
- Newspapers and Magazines
- Stationary Supplies
Article and video cross-posted from Epic Economist. Keep up with more important financial news at our Economic Collapse Substack.
Controlling Protein Is a Primary Goal
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