It is no secret that consumers face considerably higher prices for a wide range of products, including household appliances , gasoline and food.
For many Americans, it is the first encounter with much dreaded inflation, which has been mostly quiet for the past two decades.
The government announced Thursday that the much watched Consumer Price Index increased by 5% in May, resulting in the highest inflation rate discharge in 13 years . This figure is following an average inflation rate of just 1.4% last year, when the COVID pandemic – 19 kept most people at home.
The rise in prices is largely due to increased demand and bottlenecks in the supply chain, as companies struggle to increase supply and hire workers.
For buyers, these higher prices will require more planning and perhaps a restructuring of the budget.
COVID, you have to create a savings cushion so you don’t suffer a price shock when the bills arrive, ”says Douglas Boneparth, certified financial planner and president of Bone Fide Wealth in New York City.
Here’s what to look out for in seven major spending categories, with tips for managing spending.
Food
The price of some food categories is expected to skyrocket in the coming months, particularly meat, poultry and fresh fruit, according to n a recent report from the Department of Agriculture .
To help maintain under control of the food budget , make the most of promotions to stock the freezer and pantry.
“The weeks before July 4 they are the best time to stock up; you’ll see bigger discounts and more items for sale, ”says Burt Flickinger III, CEO of Strategic Resource Group, a retail consulting firm.
You can also save a lot if you stick with discount stores like Costco and Trader Joe’s; and private labels, Flickinger says.
Another strategy is to look for grocery deals at your local pharmacy or store. These outlets are expanding their variety of fresh food and some may offer lower prices than traditional stores.
Energy
Drivers are well aware that retail gasoline prices have skyrocketed; went up more than $ 1 per gallon on average over the past year to $ 3. 06 recently.
This increase in prices is due to increased demand, as more people have returned to driving, which is complicated by supply chain bottlenecks, says Patrick De Haan, head of oil analysis at GasBuddy , a website and a smartphone app that helps drivers find the best deals.
However, prices may be starting to stabilize as oil companies have stepped up production of gasoline. Still, according to De Haan, gasoline costs are likely to remain high as economic growth resumes.
If you’re planning a summer road trip, keep in mind Note that you can pay significantly more if you cross state lines to a place with higher gas taxes.
“If you check gas prices ahead of time to find lower cost options, you could save between $ 5 and $ 10 per tank, ”adds De Haan.
Plus, you can squeeze more mileage out of the gas tank just by removing the roof rack, which can create drag, drive smoothly, and adhere to speed limits.
Large appliances
The decline in production and the supply chain during the pandemic has caused a major shortage of household appliances that could last ha This end of the year. This leaves consumers facing higher prices and long waits for many types of appliances, including washing machines, refrigerators and freezers.
Although prices will eventually stabilize as As the pandemic subsides and supply returns, you probably won’t see big discounts anytime soon, says Nish Suvarnakar, Senior Market Analyst at Consumer Reports.
Before you buy, be sure to Find out which appliance features are essential versus less essential, Suvarnakar adds. For example, consider opting for basic stainless steel, a popular finish that is widely available, rather than a specialty finish.
If you’re looking for a new appliance now, you can still find offers after Memorial Day . Be sure to shop around at independent retailers, who may offer similar deals and perhaps better service, not just big box stores. And think about substitutions if your first option is not available.
Telecommunications and Internet services
During the pandemic, telecom consumers had a little respite as prices for phone and wireless services increased only slightly, while some providers lifted data caps and provided other benefits to consumers during the pandemic.
However, more recently, providers have started to raise prices and impose limits
To control those costs, consider switching to a plan. cheapest cell phone , maybe one of your internet provider .
Low-income families can benefit from discounts on Internet service and equipment through the federal program of Benefit emergency broadband .
And while streaming service prices are also on the rise, you can still cut your expenses by cutting out cable TV.
Automobiles
Prices of trucks and new cars are increasing, driven by the closure of factories to cause of the pandemic, as well as a shortage of computer chips.
That doesn’t mean you can’t find an affordable option, as the prices of individual models vary a lot, some are They sell at deep discounts and others stay at their list price.
In general, as Consumer Reports analysis shows, there is a chance of getting a 10% off or more on some good vehicles if traded.
Keep in mind that you may get more than you think about the value of your trade-in vehicle, Jeff argues Bartlett, Automotive Deputy Editor at Consumer Reports.
“The new car shortage is driving more drivers to buy used cars, which means trade-in values have risen.” Add Bartlett.
To stay within your budget, check out CR’s advice on New car deals , as well as our recommended SUV bargain and Affordable Used Cars .
Televisions
Consumers had a respite in television prices in recent months, as costs remained relatively stable, according to the latest inflation data. Some models are even expected to drop in price this year.
Still, if you don’t need a new TV right away, it might be worth waiting a few months to buy it.
“The best time to buy TVs is usually between fall and early winter, due to holiday sales and the launch of new models in January, ”warns Samantha Gordon, Consumer Reports deals editor.
Consumer Reports members can find more information on the best time to buy televisions and a wide range of products using the Guide to the best moments to buy from CR.
Take advantage of the offers
For determined buyers , you will have the opportunity to take advantage of a wide range of offers during the Amazon Prime Day , an event lasting two days on 21 Y 22 June.
You will need to be an Amazon Prime member to see most of these offers, but you can sign up for a free trial before the sale begins. You can find tips on the best way to get a deal , and the Prime Day CR Hub will keep track of the best offers.
Be sure to check out competitor offers at other retail stores as well. Target and Walmart have announced their own sale events, and more retail stores are likely to follow.
Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2021, Consumer Reports, Inc.
Consumer Reports has no financial relationship with advertisers in this site. Consumer Reports is an independent nonprofit organization that works with consumers to create a just, safe, and healthy world. CR does not endorse products or services and does not accept advertising. Copyright © 2021, Consumer Reports, Inc.