What's getting more expensive - CNN


A mixture of quick provide and excessive demand has despatched orange prices hovering. Frozen orange juice futures have risen by 50% over the course of the pandemic, reaching a two-yr excessive Thursday. Citrus illness and dangerous climate are constraining orange crops within the U.S. and globally. And then there’s simply plain dangerous timing, as demand for orange juice had been dipping for the previous few years, however skilled a spike through the pandemic — US gross sales of 100% non-concentrated juices jumped from $5 billion in 2019 to $5.5 billion in 2020 and stayed principally at that stage by means of 2021.
Florida had such a small harvest final yr — solely 44.5 million containers of oranges — its lowest crop because the 1944-45 season. In 2019 to 2020, against this, it harvested 73.2 million containers. Brazil additionally confronted a historic drought that minimize its crop by 31% from its 2019-2020 season.

“You have your classical supply-demand mismatch,” stated Shawn Hackett, president of Hackett Financial Advisors, which makes a speciality of agricultural commodities evaluation. As a consequence, shoppers ought to count on “much higher prices at the supermarket.”

Homes

The median residence gross sales value was $346,900 in 2021, up 16.9% from 2020. That’s the best enhance on document since 1999, in accordance with the National Association of Realtors.

The housing market frenzy was a boon for the everyday home-owner, who collected $50,200 in housing wealth, trying on the median value soar from 2020 to 2021.

“That is a sizable wealth gain for homeowners across the country,” stated Lawrence Yun, NAR’s chief economist. “The housing market has seen a spectacular performance this last year with sales rising and prices rising. But inventory is at an all-time low.”

The stock of unsold present properties fell to a document low of 910,000 on the finish of December, down 18% from November.

Laundry detergent

Proctor & Gamble introduced this week it is raising prices by an average of about 8% on retail clients subsequent month for its Tide and Gain laundry detergents, Downy cloth softener and Bounce dryer sheets.

The firm attributed the value enhance to value pressures, together with transportation, labor and the commodities it makes use of to fabricate its merchandise. The US producer value index, a gauge for costs producers are paying, rose 9.7% final yr.

Gas

Prices at the pump are rising once more. Crude oil climbed above $81 for the primary time in two months, and gasoline costs are creeping again up.

“This is a terrible situation. Gas prices are in this political danger zone,” Helima Croft, head of world commodity technique at RBC Capital Markets, advised NCS.

Since Monday, the nationwide common for a gallon of standard gasoline elevated by a penny to $3.32 Thursday, in accordance with AAA. On Friday it reached a median of $3.326.

Iowa, Minnesota, North Dakota and Oklahoma have seen the largest will increase, of 5 cents and more. Prices in Washington D.C. have additionally jumped 5 cents since final Thursday.

Automobiles

Edmunds, a automobile purchasing web site, stated the common value for a brand new automobile was $46,426 in December 2021, up 14% from the yr prior. A pc chip scarcity restricted manufacturing of recent autos, resulting in stock too low to satisfy demand.

The document excessive costs might be coming down, however they will not attain pre-pandemic ranges.

As inventories are projected to construct once more, consultants say there ought to be much less stress on costs.

J.D. Power forecasts that the common wholesale value of used vehicles ought to fall about 9% from the fourth quarter of 2021 to the fourth quarter of this yr, and that costs ought to proceed to say no in 2023. But they’re unlikely to get to pre-pandemic ranges.

Used car prices additionally elevated virtually 40% in December 2021 from the yr prior, a brand new evaluation by the Anderson Economic Group discovered.

NCS Business’ Danielle Wiener-Bronner, Anna Bahney, Nathaniel Meyersohn, Matt Egan, Vanessa Yurkevich and Chris Isidore contributed to this report.