Tips for consumers as prices continue to rise
BOSTON - As prices continue to rise on everyday items, many people are starting to feel the pinch more at home. The latest consumer price index shows in September, prices jumped 8.2% over last year.
The top areas seeing big increases are rent, medical care, groceries, and the cost of a new car.
So how can you save? Misty Lynch, a financial advisor in Walpole, says take a look at your household budget first.
"Right now, is a really great time to start to look at what you're actually spending," Lynch said.
For example, she suggests looking at what you are buying from the grocery store.
"Am I using all the things that I'm buying or am I throwing a lot of things away. Can I take an inventory of what I actually have at home before I actually go to the grocery store and figure out what I am going to make," Lynch said. "Because now I think anytime we can cut some of our spending it will be really helpful."
She also advises to look at any subscriptions, delivery or cleaning services. Those could be easy ways to cut back if things get tight.
But it's not all bad news.
"It's not a great time for people who are buying, but it is a great time for people who are saving," Lynch said. "If you have some money to save, interest rates on high yield savings accounts have gone up and they're continuing to go up so you can get almost over 2% in a high yield savings account which is a great place to have that money, that emergency fund, any of your savings that you're not touching right now but to have it work a little harder for you."
These new numbers will likely bring new action from the Federal Reserve next month when they will likely increase interest rates again to try to get ahold of runaway inflation.