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Prices Are Doubtful To Return To Pre-Pandemic Levels Anytime Soon
Yes, that’s right. Inflation remained elevated in July at 3.2%, according to the latest statistics from the United States Bureau of Labor Statistics. This is slightly below the 3.3% reading in June, but it is still well overhead the Federal Reserve’s target of 2%.
The factors that are contributing to inflation, include:
- The ongoing war in Ukraine has caused energy prices to rise.
- Supply chain disruptions have made it more difficult and luxurious to get goods to market.
- Strong consumer demand, as the economy continues to recover from the pandemic.
The Federal Reserve is expected to raise interest rates in an effort to cool inflation, but it is unlikely that this will bring prices down to pre-pandemic levels anytime soon. The war in Ukraine is likely to continue to put upward pressure on energy prices, and supply chain disruptions are likely to take some time to resolve. Additionally, consumer demand is likely to remain strong, as the labor market remains tight.
As a result, it is expected that inflation will remain elevated for some time. This means that consumers can expect to continue to see higher prices for goods & services.
Here are some tips for managing inflation:
- Shop around for the best prices. This is especially significant for big-ticket items like appliances and furniture.
- Buy in bulk when possible. This can save you money on groceries and other domestic items.
- Consider using coupons & discounts. There are many ways to find coupons & discounts, such as online and in newspapers.
- Cook at home more often. Eating out can be not affordable, so cooking at home is a more affordable way to eat.
- Cut back on unnecessary expenses. This could mean cancelling unused subscriptions or eating out less often.