Personal Finance

6 Things That Will See a Price Drop in 2023

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The last few years have thrown a lot of households into a tailspin, as living expenses have soared due to pandemics, supply chain issues, and out-of-control inflation.

Happily, 2023 plans to if not alleviate all of our problems, at least cauterize the wound and stop the hemorrhaging.

Check out our guide to see what will be cheaper this year. And for anyone with a masochistic streak, we’ve also put together a list of what will be more expensive in 2023.

1. New Cars

The pandemic-linked car-buying frenzy over the last few years triggered an inventory shortage, as well as supply chain issues from hell. That’s made buying a new car difficult, competitive, and expensive.

But there’s good news afoot! According to J.P. Morgan, we can expect car prices to get cheaper in 2023 by as much as 5%.

2. Used Cars

Used cars will also see a price dip in the months to come. J.P. Morgan anticipates that used cars will be less expensive by 10-20%. That’s a huge relief for consumers who are being hit with price increases at every turn.

3. Gas

Gas prices have been skyrocketing for a while.

In 2021, retail gas prices averaged $3.02 per gallon, according to the U.S. Energy Information Administration. For 2022, that number has inflated to $3.99 per gallon. But there’s good news on the horizon.

Recently, gasoline prices have dipped to their lowest levels since February 2022.

In their latest market report, the EIA predicts that gas prices will continue to drop, landing us somewhere around $3.50 per gallon for an average price in 2023.

And the surplus of gas coming out of refineries suggests that those numbers will indeed continue to fall.

4. Patio Furniture

We’re just starting to recover from a long patio-furniture shortage, thanks largely to a pandemic-fueled desire to spend more time at home and outside, not to mention the lingering ramifications of supply chain issues.

In 2023 we’re poised to see those prices drop, with inventory surpluses and a desire to see nonessential items sell both playing a role. The lowered costs will be most evident in big box stores like Target and IKEA.

5. Wheat

If the pandemic taught us anything, it’s that anyone can bake bread. But that doesn’t mean everyone should.

The global wheat supply caused many a headache in 2022 with scarcity as well as supply and shipping issues — not to mention price increases stemming in part from the ongoing Russia-Ukraine war.

But some wheat forecasts suggest that 2023 will see some relief, with a price drop of more than 70 cents a bushel, from $9.33 to $8.60.

6. Coffee

While overall prices for coffee remain at a historic high, you can expect a price drop in 2023. That’s thanks in part to lower demand and decent weather in coffee-growing markets.

However, dip might be a better term. In fact, some might call it a price stabilization. Call it what you will, but either way, coffee was at a 7-year high last July. Even if it’s just a moment of reprieve, coffee drinkers everywhere can rejoice.

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