Consumer Luxuries Expected To Be Cheaper In 2012

PASADENA (CBS) — Consumers keeping a tight hold on their wallets in 2011 now have an opportunity to loosen up, at a discount.

A host of luxuries that consumers gave up during the recession will be cheaper this year. Yes, even European travel!

With the European debt crisis, American travelers are getting a better exchange rate. American travelers will have to pay high airfare prices, but hotels, meals and other daily travel expenses will be cheaper.

"That would be great," Sharon Martin of Simi Valley said. "I'm planning to travel to Ireland sometime soon, so that might be really advantageous for me."

TVs always go on sale before the Super Bowl, but this year, because over supply, they're even cheaper. The average price of an LCD screen has gone below $500, down $100 from last year, CBS2/KCAL9's Rachel Kim reports.

Wine lovers will also find their favorite bottles for sale.

"Wine makers are sitting there with an awful lot of inventory, so they're poised to sell," wine seller Jim Carmody said.

Interest rates are also expected to stay low in 2012, so consumers in the market for a new car or a house – this might be the year to strike. The Fed is expected to keep interests rates the same, or even lower.

According to dealnews.com, other items that are expected to be cheaper include standalone GPS devices, e-readers and tablets, and car rentals.