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Price of summer fun is rising
Seems like the prices of all our summer pleasures are going up this year.
May 27, 2004: 3:15 PM EDT
By Les Christie, CNN/Money contributing writer

NEW YORK (CNN/Money) - It's official; Alan Greenspan has pronounced the death of deflation. We have nothing to fear from falling prices. Whew, that's a load off your mind, huh?

The bad news is that many of our summer pleasures will cost more us this year, not less. Prices of everything from Haagen-Dazs to hot dogs to Disney World are going up.

Energy costs are driving the increases. In mid-May crude oil sold on the spot market for more than $40 a barrel, 43 percent more than the $28 price last May. Higher diesel fuel and gasoline prices makes the delivery of almost all goods more expensive.

Ice cream ingredient prices have not been frozen

The price of ice cream, everyone's favorite summer treat, is in for a big jump this year, due to an unusual confluence of events, a "perfect storm" in the words of Lynda Utterback, executive director of the National Ice Cream Retailers Association. She says you should expect to pay 10 percent to 15 percent more for that pint of Rocky Road this fourth of July.

Milk shortages, worsened by last year's mad cow scare, have sent butterfat prices (a key ice cream ingredient) soaring.; it costs 24 percent more than a year ago.

Then, two fierce cyclones devastated the vanilla crop in Madagascar, the world largest producer. On April 21, Utterback got a report that one of her organization's members paid $420 a gallon for vanilla extract, an almost 600 percent increase from two years ago and nearly triple last year's price.

Chocolate has fared a bit better, but political unrest in West Africa and plant diseases have still conspired to hike prices to 17-year highs.

Gary Frascarelli, who owns two Gary's Ice Cream stores in Massachusetts, has already raised his prices by 50 cents for a single-scoop, hand packed ice cream cone to $2.25, and he expects to raise them another 25 cents before summer. "And I'll still make less profit," he says.

BBQ prices are smoking

But perhaps you don't have a sweet tooth. Maybe you love the smell of charring beef. Well, burgers cost 12.7 percent more already this year, according to the Bureau of Labor Statistics, thanks again to mad cow disease, cattle import bans, and smaller cattle herds. Currently, you have to shell out an average of $2.47 a pound for ground chuck at your local Safeway.

Switching to hot dogs won't help much. Frankfurters averaged $1.73 a pound in March, compared with $1.61 last July, a 7.5 percent rise. A pound of premium beef franks, such as, Oscar Mayer, could go from its usual price of about $2.95 to $3.25 or so.

A hot dog from a ballpark vendor is a comparative bargain this year. The league average price is $3.06, only a 3 percent increase. At Wrigley Field, a hot dog costs $2.75, up from $2.50 last year.

Pay to watch the major leaguers play

The overall cost of seeing a big-league game (admission, parking, and various purchases) in 2004 is up 2.8 percent, according to the Team Marketing Report, which has compiled a Fans Cost Index for 12 straight seasons.

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Admission prices climbed 3.9 percent, to $19.82, with the Boston Red Sox charging $40.77 for a seat at Fenway Park, the most in the major leagues and 5.7 percent higher than last year.

The Sox challenge for the lead in nearly every Fans Cost Index category, leaving the hated Yankees in the dust. Fenway faithful get hit hard for parking ($23, up 15 percent; league average $10.98, up 10 percent), beer ($5.50, up 4.7 percent; league average $5.17, up 1.7 percent), and a baseball cap ($15, up 51 percent; league average $12.55, up 2.4 percent).

Theme park prices take off

Attending another type of park also got dearer recently. An adult, single-day ticket to Disney's four Florida theme parks now costs $54.75, up 5 percent, the largest jump in 15 years.

Universal Orlando and Sea World followed suit, raising their prices $2.80 to $54.75, and $2.00 to $53.95, respectively.

Summer movies

So maybe you should just go see a few summer movies. But ticket prices at national theater chains have risen. In December, New York City became the first locality to break through the $10 ticket price barrier; you'll pay 25 cents more than you would have last summer to see "Troy," Brad Pitt's upcoming opus, at the Loews Lincoln Square 12 cineplex on Manhattan's Upper West Side.

Both the Loews and the United Artists chains now charge $10.25 at most of their city theaters. Nationwide, ticket prices will rise about 4 percent.

More expensive road trips

If you decide to see the USA in your Chevrolet this summer you'll pay at least 40 cents more (12.5 percent) a gallon at the pumps. The Department of Energy projects gasoline prices to peak in June at an average $2.03 (up from $1.60), but in mid-May, the average price of regular gasoline in California hit $2.25.

Room charge

Once you arrive at your destination, a hotel room will run higher this year. Both Marriott International and Starwood Hotels recently released upbeat earnings reports and predicted strong summer occupancy rates. The average room price is already up 3.1 percent (year-over-year) to $86.89, and figures to go higher during the summer travel season.

An ocean view room at the Fairmont Miramar in Santa Monica, California, will start at $239 a night this summer, $20 more than last year.

Eurocash

So maybe you think you'll flee these prices and spend a couple of idyllic weeks on the Riviera or the Greek Isles. Better think again.

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Not only do airline prices for foreign flights soar in summer, but the dollar has lost value to the euro and other currencies during the past year. Last July the dollar was worth 0.87 of a euro; it recently traded for 0.84 of a euro. This means that even if local European prices remain stable you'll still pay an extra 3.5 percent in currency exchange differences.

The dollar, however, has recently made up some ground. Back in February it was worth less than 0.78 euros. If that upswing continues, foreign destinations may be comparatively good places to pursue summer pleasures without pinching pennies this year. Stay tuned.  Top of page




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