7 Ways Inflation Will Hit Americans in 2012
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1) Already at all-time highs, analysts say U.S. beef prices <a href="http://www.investorplace.com/2012/01/2012/01/beef-prices-likely-to-head-higher/" target="_blank">will climb another 4% to 5%</a> in 2012, largely thanks to droughts that have cattle counts at 50-year lows. And that's following a 10% increase in 2011. Booming exports as a result of a falling dollar also have hit at home.</p>
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2) At the beginning of January, increasing coffee and milk prices prompted <strong>Starbucks</strong> (<a href="http://www.dailyfinance.com/quote/nasdaq/starbucks/sbux" target="_blank">SBUX</a>) to announce a <a href="http://www.investorplace.com/2012/01/2012/01/your-starbucks-fix-is-about-to-cost-more/" target="_blank">1% price increase</a> across the Northeast and Southwest.</p>
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3) The USDA predicts a host of other food-price increases, including cereal and bread (4.5%), chicken (4%) and fruit (4%). The agency says that won't just be felt at the grocery store, but restaurants likely will have to pass on those increases to consumers, too.</p>
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4) <strong>Colgate-Palmolive</strong> (<a href="http://www.dailyfinance.com/quote/nyse/colgate-palmolive-company/cl" target="_blank">CL</a>), reeling from a 5%-plus earnings decline in the past quarter, recently said it <a href="http://news.yahoo.com/colgate-hikes-prices-home-1st-attempt-years-194910978.html" target="_blank">raised prices in North America by 0.5%</a> in the fourth quarter - its first such hike in more than two years. The maker of dish soaps, toothpaste and other home wares said globally prices were up 3% for the quarter and 1% annually, and 2012 would be similar.</p>
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5) Gas prices already have <a href="http://gasbuddy.com/gb_retail_price_chart.aspx">gained about 15 cents per gallon</a> - from $3.25 to $3.40 - nationally since the start of the new year. And still looming are threats by Iran to close the Strait of Hormuz, which <strong>Morgan Stanley</strong> (<a href="http://www.dailyfinance.com/quote/nyse/morgan-stanley/ms" target="_blank">MS</a>) analysts say could make crude oil prices jump by $40 per barrel.</p>
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6) U.S. airlines, in their constant battle with fuel prices, kicked off 2012 with a price hike. <strong>Delta Air Lines</strong> (<a href="http://www.dailyfinance.com/quote/nyse/delta-air-lines-inc/dal" target="_blank">DAL</a>) announced a $20 increase in round-trip tickets on longer routes a couple weeks ago, and <strong>United Continental</strong> (<a href="http://www.dailyfinance.com/quote/nyse/united-continental-holdings-inc/ual" target="_blank">UAL</a>), <strong>Southwest</strong> (<a href="http://www.dailyfinance.com/quote/nyse/southwest-airlines/luv" target="_blank">LUV</a>), <strong>US Airways</strong> (<a href="http://www.dailyfinance.com/quote/nyse/us-airways-group-inc/lcc" target="_blank">LCC</a>) and American Airlines all followed suit.</p>
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7) Sending a letter? That first-class postage is up 1 cent more in 2012, too. And companies like streaming-video and DVD delivery giant <strong>Netflix</strong> (<a href="http://www.dailyfinance.com/quote/nasdaq/netflix/nflx" target="_blank">NFLX</a>) <a href="http://www.investorplace.com/2012/01/investorpolitics/united-states-postal-service-stamp-prices-usps-companies-nflx-stmp-am/" target="_blank">that rely heavily on the mail</a> - Netflix spent up to $600 million on DVD postage in 2010 - could end up passing the favor to its customers. And considering the <a href="http://www.investorplace.com/2012/01/investorpolitics/postal-service-privatize-mai/" target="_blank">constant woes of the USPS</a>, another price hike isn't out of the question.</p>
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