After a year of rising prices in most consumer categories, here’s some good news: Commodity costs are finally dropping and will continue to fall in 2015.
In the food category, the cheaper grains used in animal feed, especially corn, are making some grocery store items – from milk to bacon to chicken – more affordable. Corn traded at $3.50 a bushel in September, which was half its peak in 2012.
Also, the price of wheat is slated to go up, so don’t expect the price of bread, pasta and cereal to go down this year. Just as well for those of us who have sworn off carbs in an effort to lose weight.
The falling price of oil will also benefit consumers, and particularly drivers, resulting in everything from cheaper gas to slightly more affordable airline tickets.
However, lower gas prices have encouraged more American consumers to drive big cars and SUVs again. With higher demand, the prices of these types of vehicles will likely go up.
Continued low inflation also means that gold will be cheaper, since investors won’t be looking for an inflation hedge this year.
Falling prices on some items come at a time when consumer sentiment is at its highest level in nearly eight years thanks not only to lower oil prices but also better job and wage prospects.
See our list: 8 ITEMS THAT COST LESS THIS YEAR.
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