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Inflation remains high, but cooled moderately last month.
Key Point
- The consumer price index rose 7.7% on an annualized basis in October.
- This is a slower pace than in September and indicates that we may see some easing.
For months, consumers have been battling rampant inflation — and it’s taking a clear toll. Many are piling up massive balances on their credit cards just to survive. , some had to raid their savings accounts to cover basic expenses like food, transportation, and utilities.
The Consumer Price Index (CPI), which measures changes in the cost of consumer goods, rose 8.2% on an annual basis in September. But in October, his CPI only rose 7.7% on an annualized basis. And that could be a sign that inflation and the cost of living are slowly starting to come down.
What consumers love
The inflation rate of 7.7% per annum remains remarkably high. But it’s good news, given that the economist had predicted an annualized rise of 7.9% for him in October.
Of course, this doesn’t mean that consumers will see much lower prices anytime soon. However, if the CPI continues to trend downward monthly, then by this time next year, the cost of goods will likely be much more manageable.
How to deal with ongoing inflation
With inflation still far from ‘normal’, consumers will have to deal with higher prices for the foreseeable future. And there are various ways to deal with it.
If you’re struggling with your bills, first check to see if you’re eligible for federal benefits, such as food benefits. may also be available in
If you’re not struggling enough to qualify for federal aid, but you’re still struggling, take a serious look at your current spending and find ways to cut corners. It may mean giving up luxuries such as takeout and takeout.
Let me be clear, it is never easy to cut back on the little pleasures that make life easier and more enjoyable. But if there’s anything between that and adding to an already hefty credit card balance, it’s taking its toll.
At the same time, try to take advantage of the strong gig economy. There are plenty of opportunities to start a side business in addition to your main job and use your income to keep your bills up to date. You may even be able to pay off some of the debt you may have incurred in the past year.
And that side hustle doesn’t have to be the one that makes you miserable.
staying positive is worth it
All in all, rampant inflation isn’t over, but things could eventually turn around. Consumers still have to sit still to get real peace of mind, but a lot could get better in the next 12 months.
Equally important, lower inflation could put the Fed on the brakes on aggressive rate hikes. This gives consumers some peace of mind in terms of borrowing.
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