Rising Costs: Brace for December Price Hikes
Get ready for another round of price increases this December as the government confirms services will see adjustments starting next month.
Fuel Prices on the Rise
“The change in the consumer price index (CPI) in November may be similar to or slightly higher than the 2.7% in October,” according to a private forecast. Based on this prediction, December’s increase will likely be in line with or below that percentage.
Fuel taxes are also climbing, bringing petrol and diesel tax rates closer to the national average of about 2%. The tax on petrol currently sits at 2.7%, while the tax on liquid fuels (ICL) is at 1%. Starting Sunday, these rates will be updated.
Electricity and Gas Bills Set To Rise
While specific details on electricity and gas bill increases are still pending, officials have assured the public that these adjustments will not exceed an average of 2%. Information regarding the breakdown – generation, distribution, and transportation – will be released within the next hour.
Similarly, gas bills will see an increase, capped at an average of 2.7%. The government has emphasized a commitment to keeping these price adjustments within manageable limits.
* What specific goods and services are experiencing the most significant price hikes this December, and how are these increases impacting consumers?
## Rising Costs: A Conversation with Scott Horsley
**Host:** Welcome back to the program. Today, we’re talking about rising costs hitting consumers’ wallets just in time for the holidays. Joining us to break down the latest trends is NPR’s Economics Correspondent Scott Horsley. Scott, thanks for being with us.
**Scott Horsley:** Thanks for having me.
**Host:** The headlines are warning of price hikes across the board this December. What’s driving these increases, and what specifically should consumers be bracing for?
**Scott Horsley:** Well, it’s a mixed bag out there. We’ve seen some good news on inflation this year, with overall prices cooling down from their peak. [[1](https://www.npr.org/2023/12/27/1221254088/5-charts-inflation-prices-cheaper-pricier-2023)]. However, certain sectors are still seeing significant increases.
Housing costs, for example, remain stubbornly high, and service sector prices are expected to see some upward adjustments in December. Fuel prices have also begun to climb again, adding to the pressure on household budgets.
**Host:** That’s concerning news for consumers already feeling the pinch. Are there any bright spots on the horizon?
**Scott Horsley:** There are glimmers of hope. The S&P 500 has performed well this year, and while the dollar’s value has fluctuated, it hasn’t seen dramatic changes recently. [[1](https://www.npr.org/2023/12/27/1221254088/5-charts-inflation-prices-cheaper-pricier-2023)]. These are factors that could potentially help to moderate price increases in the coming months.
**Host:** What advice would you give to listeners navigating these uncertain economic times?
**Scott Horsley:** Now more than ever, it’s important to be mindful of your spending and look for ways to save where you can. Comparing prices, taking advantage of discounts, and potentially adjusting non-essential spending can help alleviate some of the pressure.
**Host:** Valuable advice, Scott. Thanks for your insights and helping us make sense of these complex economic trends.
**Scott Horsley:** My pleasure.
