Americans face higher prices, flat wages in 2013
The new norm will be the same as the old norm for most American households this year: financial suffering and a continued slow recovery from the Great Recession.
Americans can expect price tags for many goods and services to increase faster than take-home pay again this year. Higher costs are expected for food, airline flights, rent, housing prices, government fees, shipping costs and college tuition. While gasoline prices are expected to fall by a small amount, they’ll do so after two consecutive years of record prices at the pump.
Many households will be confronted by the additional 2 percent payroll tax included in Tuesday’s political deal to avert the fiscal cliff. The tax increase is expected to cost the average Iowa worker about $800, according to Creighton University economist Ernie Goss.