I read some predictions in the August 25 Kiplinger Letter which I thought might interest you.
- Energy prices are on the rise. Crude oil is expected to increase “a few dollars a barrel”. Natural gas could increase as much as 10% and electricity about 2%.
- Employers can expect to pay an additional 4% for health insurance while prescription drugs could increase by 10.3%. This is actually down from the 11.6% increase in 2017!
- Airfares and freight costs will increase by about 2%. Hotels up about 2.2% and car rentals by 3%.
- UPS and Fed Ex are expected to increase their rates by 3-5%.
So is anything expected to decrease in cost? YES! Technology and telecom costs will continue to slide; smartphone, tablets, PC’s and printers may decrease by as much as 10%!
As Wall Street reaches new highs, hopefully it will provide a means for you to handle the higher prices.
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®