Another reason to celebrate the start of 2016: It promises relief for your budget, with lower prices predicted on household necessities from heating oil to milk.
What better way to ring in the New Year than with savings at the checkout counter, especially when those potential savings are expected to continue throughout the year?
According to price predictions for this year, there are a handful of essential household items that will cost less in 2016 than they did in 2015.
“As the dollar continues to gain ground against other currencies and the price of oil maintains at low levels, companies from many sectors are able to keep their costs affordable for their customers,” according to the website Wise Bread.
Here are five common consumer buys that should be cheaper in 2016:
- Milk: It’s likely that you’ll continue to drink in some savings in the dairy aisle in 2016. After paying record-high prices for milk in 2014, Americans saw prices dip in 2015 and the “current trend of low milk prices is likely to continue until at least mid-2016,” according to Wise Bread.
- Gas: Americans enjoyed lower prices at the pump in 2015, as the average national gas price fell below $2 a gallon for the first time in seven years — a result of a drop in crude oil prices. The cheap gas trend is expected to continue this year. “The average annual price for gasoline in 2016 could stay the same as 2015 or possibly even drop 5 to 15 cents a gallon lower,” Christine Delise with AAA tells CBS Baltimore.
- Pork: This may be a good year to feast on bacon and pork chops. “According to an agricultural economist at the University of Missouri, a slight uptick in hog production combined with a low price for corn (the main feed used in raising hogs) will keep the prices of pork products affordable throughout 2016,” Wise Bread says.
- Bread: An abundance of wheat will likely keep bread prices down this year, which is great news for households like mine, where loaves of bread seemingly disappear overnight, used for peanut butter and jelly sandwiches for the kids, morning toast with jelly and my husband’s sandwiches at lunch. “Unless wheat farmers experience an absolute loss in crops due to some freak event, you can expect more savings in your weekly bread purchases,” Wise Bread says.
- Heating oil: If you use heating oil to keep your home warm and toasty in the winter, this will make you happy. The price of heating oil is expected to dip to $2.52 per gallon this year, compared with $2.67 in 2015, according to the U.S. Energy Information Administration. “In the last four years, we have gone through an absolute revolution when it comes to energy,” Peter Kenny, independent market strategist, told CBS. “Those years of exorbitant prices paid by U.S. consumers have effectively come to an end.” Families that use heating oil are expected to spend about $570 less this winter than last to heat their homes.
Which predicted price drops will have the greatest impact on your budget? Share your comments below or on our Facebook page.