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Editor’s note: This article has been updated with corrected information from Moody’s about additional spending by US households this year on purchasing the same goods and services as last year.
Americans continue to feel the sting of inflation.
Consumer prices rose 8.3% yoy in April. As a result, US households are spending $341 more per month to purchase the same goods and services than they were a year ago, due to inflation that is above the typical 2% inflation rate. according to an analysis by Ryan Sweet, senior director of Moody’s Analytics.
“That’s a little less than last month, but still a noticeable drain on budgets,” Sweet said.
In March, the consumer price index, which measures the price of goods and services, rose 8.5% year-on-year.
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While the pace of price increases has slowed, it hasn’t been as strong as expected, Greg McBride, Bankrate’s chief financial analyst, said in a note.
“It can be tempting to say we’ve seen the climax, but we’ve also been flipped headfirst before, as was the case last August,” he wrote.
Of course, consumers still feel the pain, especially when it comes to the cost of groceries, housing, plane tickets, and new cars. Energy prices, on the other hand, fell 2.7% from March – although they are still up 30.3% from April 2021.
New car prices rose 1.7% from March, while used cars and trucks fell 0.4%. Meanwhile, air fares rose 18.6% month-on-month and accommodation costs rose 0.5%.
Grocery food prices rose 0.9% from March and 9.4% from a year earlier. Eggs, chicken and milk were most affected. The cost of eggs rose 10.3% from last month, while milk rose 3.1% and chicken prices rose 3.4%. Butter rose 3.7% month-on-month, compared to a 7.1% increase in margarine prices.
However, some prices declined month-on-month, such as vegetables, which fell slightly by 0.3%; Beef & Veal down 0.9%; and Ham, which posted a 1.8% decline.
“It’s important to pay attention to the cost of goods and especially the items that you have to pay for on a regular basis each month,” said Winnie Sun, co-founder and chief executive officer of Sun Group Wealth Partners, based in Irvine, California.
Adjust your budget
To combat higher prices and find ways to save money, first review your spending.
“Knowing how much ‘more’ you’re spending can help you make informed decisions,” said Sun, a member of the CNBC Financial Advisor Council.
That could include buying something in bulk, shopping for sale, or swapping one food item for another that’s less expensive, she added.
Meal planning can also help you save on groceries.
Money whiz Sahirenys Pierce, founder of personal finance blog Poised Finance & Lifestyle, creates a meal plan for the week that includes items that are on sale. She then prepares three of these meals on Sunday. Having a plan for the rest of the week will help her avoid takeout or fast food.
“This strategy has helped my family save hundreds of dollars during our debt-free journey, the pandemic, and now in times of high inflation,” Pierce said.
Look at other bills besides the grocery store, e.g. B. Subscription Services, which you may be able to do without. Consider swapping an expensive vacation for a day trip or stay.
You can also set it up as a monthly money challenge, Sun suggests.
“Extend your supermarket budget, shop your pantry, drive less for a month, find creative outlets that bring joy for a month without increasing your spend,” she said.
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While saving money helps, finding ways to bring more money into your household can also help.
Consider taking on temporary part-time jobs, e.g. For example, freelance or tutor, or even ask your manager for more work for a higher pay, Sun advised.
Selling items you can live without, like toys, appliances, and clothing, is another way to make some money. You can also rent something you don’t use, such as a B. an extra room, a garage or even your pool (check your insurance first).
“Stretching your earning muscles can really benefit you during tough financial times and set you up for even greater success when things get better,” Sun said.
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https://www.cnbc.com/2022/05/12/whats-more-expensive-as-inflation-costs-families-extra-341-a-month-.html Which is more expensive as inflation costs families an additional $341 per month