These past few months have been unpredictable to say the least. In addition to the Russia-Ukraine war, at the top of people’s minds is inflation including rapidly rising prices at the gas pump and grocery store.
To help ease inflationary pressures, this week the Federal Reserve approved its first interest rate increase in more than three years. A CNBC article written by Finance Editor Jeff Cox described the rate hike as an “incremental salvo to address spiraling inflation without torpedoing economic growth.”
Here are a few key points from this CNBC article:
•The Fed approved a .25 percentage rate hike.
•Rate rises are likely coming at each of the remaining six meetings in 2022.
•Members sharply raised their outlook for inflation.
With inflation rates at a 40-year high and the increasing potential for them to continue rising, there are a few practical ways to hedge inflation in your day-to-day life, according to CNBC Money Editor Jim Pavia:
Maintain cash reserves. This can help with larger bills or unexpected expenses.
Stay invested in equities, which have a strong track record of offsetting rising prices. For more than 90 years, stocks have yielded robust returns despite inflation.
Negotiate your debts. For instance, refinance your mortgage or pay off any existing debts. Pay attention to deals that offer 0% interest for extended periods.
Take advantage of grocery store promotions by stocking up your freezer and pantry. Also look for food bargains at drugstores and convenience stores, as these places are expanding their variety of fresh foods, and some may offer lower prices that traditional stores.
Track gas prices. There are a variety of apps you can use to compare prices at gas stations like GasBuddy, Gas Guru and AAA TripTik.
Do you have questions about inflation and how to protect your savings against rising costs? Fox Financial Group can help. Contact us HERE!
Investment advisory services offered through Mutual Advisors LLC DBA Fox Financial Group, an SEC registered investment adviser.