New York City – Fresh financial pain is on the way, with price hikes expected on everything from underwear to cereal.

City merchants say they’ve held the line during the economic downturn, but now, because of the increased cost of cotton, wheat and other commodities, price increases are inevitable on almost everything we use.

Consider:

– Global wheat prices more than doubled from June to January, the World Bank says. Corn and sugar prices rose 73%. Experts say that means the price of cereals, sugary drinks and other foods have nowhere to go but up.

– Gasoline prices are soaring as New Yorkers struggle to pay higher bus and subway fares. Gas costs an average $3.46 for a gallon of regular in the city, up from $2.91 a year ago, AAA New York says.

– Cotton futures have risen 44% since Jan. 1, so clothing is getting more expensive. Underwear maker Hanesbrands warned it will mark up prices throughout the year – and for some products, every three months.

Consumers can expect food prices to go up in the coming year. (Harbus for News)

As local food suppliers mark up products, owners of the city’s 1,000 food manufacturing and processing businesses and nearly 19,000 restaurants will feel pressure to charge customers more.

New Yorkers are also burdened with higher bills for MetroCards, utilities and health insurance.

(Source: NY Daily News)