AARP Eye Center
After peaking at 9.1 percent in June, inflation is finally starting to ease somewhat, but that doesn’t mean everything will be a whole lot cheaper in 2023. The consumer price index, the government's main measure of inflation, rose 6.5 percent the 12 months ended December, according to the Bureau of Labor Statistics. It’s shaping up to be a mixed bag, with prices for some consumer products still rising while others begin to come down.
Much of it has to do with actions out of the control of consumers. Supply chain issues, severe weather and COVID-19 outbreaks in China are still impacting production. The Federal Reserve is trying to tame inflation by raising interest rates, but these efforts are also driving up the cost of borrowing, whether done to purchase a home, a car or a pricey item on credit.
AARP Membership — $12 for your first year when you sign up for Automatic Renewal
Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.
With that in mind, here’s a look at four products to consider buying in 2023 when prices are expected to come down, and four products to think twice about buying because costs are high and forecast to go even higher.
Record demand spurred on by the pandemic and supply chain delays that hurt production sent prices soaring in 2022. That situation is improving, which will drive prices back down. How much? According to a J.P. Morgan forecast, new car prices are expected to decline between 2.5 and 5 percent, while used car prices are predicted to fall 10 percent to 20 percent this year. There’s a catch, however: While new car prices are beginning to fall, interest rates are rising. If you’re financing, expect to pay a higher rate on your loan. Pay cash, if you can, or at least shoot for a bigger downpayment so you're financing a lower amount.