Inflation Is Back! What It Means For You And How To Survive It

Inflation is back! After several decades in which inflation has been virtually non-existent, the Federal Reserve has started raising interest rates and some experts expect to see inflation as high as 4% in the next 12 months. How can this affect you? How can you survive? Read on to find out!

Do I care about this ?

Inflation is the situation when prices in an economy rise over time. This is what's happening to prices right now, and it means that the goods you buy are going to cost more tomorrow than they do today. With inflation on the horizon, how can you prepare for it? First off, understand that not all goods will be affected equally. The price of meat might go up but there might be a decrease in the price of produce. Second, take advantage of discounts whenever possible: if your favorite grocer is running a sale on milk this week, stock up! Keep an eye out for sales and coupons so you're always getting the best deals available.

Why did this happen ?

The Federal Reserve raised interest rates in December of 2015, and it is anticipated that the Fed will continue to raise rates at a slower pace. This is the first increase in rates since 2006, and it means we could see even more increases over time. In the short-term, consumers are experiencing increases in cost-of-living expenses across many different sectors. However, this is not all bad news because it may lead to an uptick in economic activity as people have more money to spend on goods and services. So what does this mean for you? Find out how you can prepare for these changes with tips from experts below

Where will prices go next ?

The Federal Reserve has made it clear that they plan to keep interest rates low in the foreseeable future. This means that we can expect a continued upward trend in prices for goods and services, which could lead to more volatile economic situations than we have seen in recent years. It is important for consumers to be aware of inflation and how it will affect their day-to-day lives. One way to protect yourself from inflation is by putting away money into savings so you have something on the other side of an emergency or potential price spikes in your expenses. Another way to protect yourself against inflation is by looking at whether or not you are getting good value for what you spend each month. Purchasing items that last longer like appliances, furniture, and clothes could save you time and money in the long run.

How do I survive ?

1) Watch for increases in prices. If you are a business owner and your input costs (e.g., raw materials) increase, it will affect the price of your product or service. Conversely, if you are a consumer and your take-home pay remains stagnant, then you'll find yourself spending more to maintain the same lifestyle. 2) Stay on top of trends in order to predict what will happen next. 3) Create an emergency fund. 4) Ask questions about where and how you spend money so that you can cut back when needed.

Where can I find more information ?

There is a lot of information out there, and it can be hard to know what you need to know. Here are some links to help you get started:

* Federal Reserve Bank of Boston on What Exactly Is Inflation?

* The Federal Reserve on How Will Inflation Affect Your Purchases? * NBC News 5 Things You Should Know About Inflation

* U.S. Bureau of Labor Statistics- Consumer Price Indexes

* FRED- Consumer Price Index

Will I be better off in the long run ?

It can be difficult to see the long-term benefits of inflation in the short-term. But, the truth is that inflation helps to keep prices stable and can even keep them lower than they would be without it. If you're feeling uncertain about your finances, consider these tips on how to survive and thrive during this time of change. 1) Make a budget for expenses. 2) Keep track of all spending habits, including online purchases and bill payments. 3) Stay informed by reading financial blogs or websites like Money Under 30 so that you can learn from others' experiences with inflation. 4) Have an emergency fund set up in case anything unexpected happens to your bank account balance or monthly budget.