12 Things That Could Cost More in 2025

New tariffs, resurgence of inflation, supply chain snafus and booming demand could drive up prices on a range of goods in the new year

Cameron Huddleston,

Updated January 15, 2025

AARP

Comments

En español

Published January 03, 2025

/ Updated January 15, 2025

different items that could cost more this year

Photo Collage: AARP; (Source: Getty Images (7))

If you have resolved to spend less in the new year, you might need to adjust your budget because 2025 could be marked by rising prices on many things you like to buy.

Although inflation has been cooling, consumer prices still rose 2.9 percent year-over-year in December 2024, the highest uptick since last July, according to the Consumer Price Index from the Bureau of Labor Statistics. But that doesn’t mean you should rush out and stock up on everything. “Pallets of water bottles and toilet paper are panic buys,” says Ernie Tedeschi, director of economics at The Budget Lab at Yale.

Instead, be selective. Prices on a range of items could increase in 2025, according to projections by industry groups and retail associations. Take these dozen potential price hikes into consideration as you craft your 2025 budget.

Appliances

Now is a good time to consider buying major household appliances, such as a stove, refrigerator or washing machine, if you need them, says Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation (NRF). Household appliances could cost consumers $6.4 billion to $10.9 billion more if the U.S. imposes new tariffs on imported goods, according to an NRF study.

Automobiles and auto parts

“If you’re thinking of replacing your car, it’s a good time to do that,” says Rob Handfield, a professor of supply chain management at North Carolina State. Potential changes to the U.S. trade policy with Mexico and Canada could impact car prices because 58 percent of auto parts are imported from those two countries, according to the Auto Care Association. Now could also be a good time to make car repairs that you’ve been putting off, before parts potentially increase in price.

Coffee

Coffee prices are expected to climb 20 percent in 2025 as a result of adverse climate conditions, rising production costs and growing demand, according to International Supermarket News. The exception: you might find deals by buying in bulk. “If you want to go to your local Costco and buy five or 10 pounds of coffee, you’d be OK,” Handfield says.

Electronics

Most Popular

It could be a good idea to buy a laptop, iPad or smartphone sooner rather than later if you’re looking to save money, Handfield says. Prices on laptops and tablets may rise by 46 percent if changes to U.S. trade policy are made, according to a report commissioned by the Consumer Technology Association. Smartphone prices could jump 26 percent.

Furniture

The NRF study estimates that consumers could pay $8.5 billion to $13.1 billion more for furniture. So if your sofa, bedroom set or dining room table have seen better days — or you have other worn-out furniture — consider shopping for deals to replace them.

Home renovations

A variety of factors could lead to high lumber prices in 2025, including strong housing demand and environmental and supply chain disruptions, according to wooden pallet distribution company First Alliance Logistics Management. If you’re thinking about renovating your home or tackling home maintenance projects, don’t delay. “I would definitely start having conversations with contractors,” says Tedeschi, who recommends locking in prices before lumber costs go up.

Housing

According to a number of economist forecasts, it will still be a seller’s market in 2025, with home prices expected to continue to rise, though perhaps more slowly than in recent years. The National Association of Realtors predicts that the national median home price in 2025 will rise 2 percent to $410,700. Mortgage rates are expected to stabilize but not drop any time soon.

Prescription drugs

Several drug manufacturers have announced price increases for 2025 ranging from 2 percent to 10 percent, according to AnalySource, a drug pricing analytics tool. Vaccines, cell therapies and specialty medications are among the prescription drugs that will cost more. (A new AARP-backed cap on out-of-pocket drug expenses that goes into effect in 2025 will help offset medication costs for many Medicare beneficiaries.)

Restaurant meals

Prepare to pay more when you go out to eat in 2025. The U.S. Department of Agriculture predicts that menu prices will increase 3.5 percent, which makes restaurant freebies and deals even more enticing in the new year.

Shoes

Consumers could spend $6.4 billion to $10.7 billion more for footwear, according to the NRF study. “If you need a new pair of running shoes or walking shoes, it might be a good time to buy,” Handfield says.

Streaming services

You might have to pay more to watch your favorite TV shows and movies on subscription streaming services. YouTube TV’s monthly subscription is rising to $83 on Jan. 13 for current subscribers, a $10 increase. Other streaming services could follow suit with price hikes of their own.

Travel gear and accessories

If you can find deals on backpacks or luggage, Gold recommends purchasing these items now, since consumers could pay $2.2 billion to $3.9 billion more for travel goods if changes to U.S. trade policy are enacted, according to the NRF report.

%{postComment}%

Cameron Huddleston is an award-winning personal finance journalist and author of Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances. Her work has appeared in Kiplinger.com, Kiplinger's Personal Finance, Forbes Advisor, Chicago Tribune, Business Insider and many more online and print publications.

Unlock Access to AARP Members Edition

Join AARP to Continue

Already a Member? Login

Recommended for You

Benefits Recommended For You

See All