Prices Are Skyrocketing: Here’s How to Lessen the Impact

Paco Dennis

Paco Dennis

SF VIP
Location
Mid-Missouri
Inflation and shortages, what a combo!

"The price of pretty much everything — including groceries and heating your home — has gone up since last year. The inflation rate reached a 30-year high in October, according to Consumer Price Index data released Wednesday by the U.S. Bureau of Labor Statistics.

The Consumer Price Index surged 6.2% for the 12 months ending in October, marking the largest 12-month increase since December 1990.

In October, prices increased 0.9% from the previous month, even greater than the 0.4% rise in September. Here are some of the most significant movers this month, by category (note that the October percentages are seasonally adjusted, while the 12-month figures are unadjusted):

  • Grocery prices rose 1% (up 5.4% over the past 12 months).
  • Fuel oil rose 12.3% (up 59.1% over the past 12 months).
  • Gas prices rose 6.1% (up 49.6% over the past 12 months).
  • New car prices rose 1.4% (up 9.8% over the past 12 months).
  • Used car prices rose 2.5% (up 26.4% over the past 12 months).
Consumers have seen inflation making the news. Earlier this month, snack maker Mondelez — the company behind such brands as Honey Maid, Oreo and Ritz — said it's looking at starting off 2022 with a 7% price increase in the U.S. to account for rising costs of factors like commodities, packaging and transportation."

This is a very good and timely article. I think we need to prepare, and this article has very smart and creative ways to lesson the impact.

3 minute read

https://www.msn.com/en-us/money/per...-lessen-the-impact/ar-AAQyzXi#image=AAPtIWj|8
 

Let the prices rise although I feel sorry for people who work for minimum wage or those without a good pension. As for me, I consume less and buy less so I don't worry at all. I think the housing bubble is going to bust pretty soon here in Canuck country! If you got a 40 foot motorhome or a V8 4X4 truck; you have to either downsize or "suck it up" and pay the ever increasing fuel prices. Sorry but I started downsizing about 5 years ago and I'm might glad I did.
 
In the US, California trucking laws are a big part of the problem and that's a big problem indeed since three of our 10 largest ports (LA and Long Beach are top two overall) are located in California. Some of the laws went into effect in 2020. More restrictive ones to come in 2023. I've read comments from truckers saying they're not going to Cali anymore and some are getting out of the business altogether because they can't make a profit under the new laws.

Overview of CA laws from the California Air Resources Board:

A Guide to California’s Clean Air Regulations for Heavy-Duty Diesel Vehicles


Going green is wonderful, but viable green alternatives need to be in place before old tech is restricted.

If our federal government wants to spend billions more of the imaginary money they 'think' we have, grants to truckers to retrofit or buy new equipment to meet green standards would be a good start.

.
 
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Tom 86 said:
Lets all just time travel back to a year ago.
Things were much better then. The gas then was $1.89 a gallon, now it's $3.69 a gallon. , My propane was 89¢ Now it's $2.19 a gallon.
Wish we had the person that lowered all this back.
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Well, we will soon be drilling for oil again in the Gulf of Mexico ..... current administration is backtracking it seems.

More than 80 million acres in the Gulf of Mexico is now open to auction for drilling.

from Newsweek, and CNN and ..... https://www.msn.com/en-us/news/us/b...-gas-leasing-in-the-gulf-of-mexico/ar-AAQO4M2
 
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Packerjohn said:
Let the prices rise although I feel sorry for people who work for minimum wage or those without a good pension. As for me, I consume less and buy less so I don't worry at all. I think the housing bubble is going to bust pretty soon here in Canuck country! If you got a 40 foot motorhome or a V8 4X4 truck; you have to either downsize or "suck it up" and pay the ever increasing fuel prices. Sorry but I started downsizing about 5 years ago and I'm might glad I did.
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Crap, and me with a 38 foot motor home and a 4x4 Dodge diesel. :( Price of gas is bad enough, but, on the last rip up to Arkansas, diesel was 3.77 to 3.88 a gallon at truck stops. Ok, for my one trip, I can grumble, but, it's not the end of the world. However, you know that price increase for everything hauled by truck will just be passed on to the consumer. Buckle up... we're in for a bumpy (and expensive) ride. :mad:
 
I'll tell you how to lesson the impact....don't buy stuff! 🤣 Seriously with all this talk about high inflation, my grocery bill was lowered by an average of $16 a month this year. I don't buy meat (with the exception of turkey burgers) and chicken on occasion, so I'm not taking a hit there. I also don't have car expenses; I feel sorry for you who do! I will probably feel the inflation crunch when I finally start having my floors replaced and kitchen remodeled though. :sneaky: Luckily, my investments are doing well enough (most with double digit returns) to cushion the impact. That was a good article with practical advice.
 
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OneEyedDiva said:
I'll tell you how to lesson the impact....don't buy stuff! 🤣 Seriously with all this talk about high inflation, my grocery bill was lowered by an average of $16 a month this year. I don't buy meat (with the exception of turkey burgers) and chicken on occasion, so I'm not taking a hit there. I also don't have car expenses; I feel sorry for you who do! I will probably feel the inflation crunch when I finally start having my floors replaced and kitchen remodeled though. :sneaky: Luckily, my investments are doing well enough (most with double digit returns) to cushion the impact. That was a good article with practical advice.
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Yes, OneEyed Diva, good advice from you too. "Don't buy stuff!" That sure makes sense to me. Sure we have to buy groceries but we can save a whole pile of money by not buying meat and doing the cooking at home. Anyway, at my age I don't need a lot of stuff as I live in an apartment so I don't really care about the crazy prices for houses these days. People have to realize that prices can only go so high. If you have to pay $5 for 1 can of Coke, then everyone will stop buying Coke. I was checking the price of TV bluetooth sound bars this morning. The prices are $130 CND up to $1149 for a Bose Smartbar 900. Seems to me that a good soundbar could be purchased for around $200 - 300. If you want to spend $1149 plus $137.88 in taxes then you shouldn't be crying that things are expensive. Folks need to budget wisely. Anyway, they say, "the best things in life are free" but most folks haven't the slightest idea what I'm talking about.
 
Packerjohn said:
Yes, OneEyed Diva, good advice from you too. "Don't buy stuff!" That sure makes sense to me. Sure we have to buy groceries but we can save a whole pile of money by not buying meat and doing the cooking at home. Anyway, at my age I don't need a lot of stuff as I live in an apartment so I don't really care about the crazy prices for houses these days. People have to realize that prices can only go so high. If you have to pay $5 for 1 can of Coke, then everyone will stop buying Coke. I was checking the price of TV bluetooth sound bars this morning. The prices are $130 CND up to $1149 for a Bose Smartbar 900. Seems to me that a good soundbar could be purchased for around $200 - 300. If you want to spend $1149 plus $137.88 in taxes then you shouldn't be crying that things are expensive. Folks need to budget wisely. Anyway, they say, "the best things in life are free" but most folks haven't the slightest idea what I'm talking about.
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Thank you. You've made good points too. Another thing...many of the grocery items I buy are on sale and when they are, I stock up. I won't need to buy pasta sauce, among other things, for almost a year. Another thing that helps with inflation is making good use of credit cards that give cash back rewards. In 2020, I got back $590 in rewards, which I used for statement credits. Of course I never accrue interest so the rewards are not eaten up by interest. Despite me saying "don't buy stuff", I've done a whole lot of shopping in the last couple of months, but it's buying things I actually really need at great prices in order to head off the shortages and rising prices. Exception, I bought three "wants" from my favoritel consignment shop. An all weather, 3/4 length navy jacket with a hood (in new condition), a long sleeve navy T-shirt (I've been wanting one for years) and a sweatshirt in my favorite color, orange, all for the budget busting price of $12.99. 😂

As for Bose, they can keep their overpriced products as far as I'm concerned. I thought I was doing something when several years ago I bought a Bose radio that was being so highly touted for sound quality. My son is an audio engineer and deejay. We both have very keen, discerning ears when it comes to music. My husband had bought over an old boom box with a CD player. My son and I both agreed that the boom box actually had better sound than the Bose. I took the radio right back.
 
rgp said:
IMO .... the best way for all of us to fight inflation is to simply quit buying.

Buy only what we need, leave the shiny bobbles & such alone. Drive only when we need to stretch that gallon, etc.

But .... collectively we won't , Christmas is coming, and many just go goofy with ye'ol credit card .
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I live 20 miles from Lafayette. So when I get a text that my scripts are ready I make ONE trip to pick them up, then go to Meijers & pick up a few things that I need. Then on down to Sam's Club to stock up on paper goods like T.P. & Bounty. Also my Keto bread. 2 loaves in a bag for $6.52. The same name of Keto bread at W Mart is $5.89 for one loaf.

Also while at sam's I top off my Durango with gas, as it's usually 10 to 15¢ cheaper there than anywhere else. I do go out to eat that one time for a small treat.

GK's are getting money this year so I don't have to shop.
 
OneEyedDiva said:
Thank you. You've made good points too. Another thing...many of the grocery items I buy are on sale and when they are, I stock up. I won't need to buy pasta sauce, among other things, for almost a year. Another thing that helps with inflation is making good use of credit cards that give cash back rewards. In 2020, I got back $590 in rewards, which I used for statement credits. Of course I never accrue interest so the rewards are not eaten up by interest. Despite me saying "don't buy stuff", I've done a whole lot of shopping in the last couple of months, but it's buying things I actually really need at great prices in order to head off the shortages and rising prices. Exception, I bought three "wants" from my favoritel consignment shop. An all weather, 3/4 length navy jacket with a hood (in new condition), a long sleeve navy T-shirt (I've been wanting one for years) and a sweatshirt in my favorite color, orange, all for the budget busting price of $12.99. 😂

As for Bose, they can keep their overpriced products as far as I'm concerned. I thought I was doing something when several years ago I bought a Bose radio that was being so highly touted for sound quality. My son is an audio engineer and deejay. We both have very keen, discerning ears when it comes to music. My husband had bought over an old boom box with a CD player. My son and I both agreed that the boom box actually had better sound than the Bose. I took the radio right back.
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It's interesting what you said about Bose. My brother has a Bose radio and it cost a "small fortune." I too have a credit card that gives me cash back. I only got it last year but wish I had got it years ago. I think that there is a big problem with our society and that is too many people are maxed out on their credit cards. They say that average consumer debt here in Canada is $92,000. That is unbelievable! These people must be "shaking in their booths" when the media talks about interest rates going up. As for me, I would be smiling if those interest rates go up. Seniors with savings have been punished for way too long with all that "free" money that the banks seem to be promoting.
 
I made a quick trip to the local grocery store, and like always, I went through the aisles, looking for sale items. I found sugar, eggs, and butter on sale, so I picked up some extras, even though they weren't on my wife's list. If it's something we regularly use, and it's on sale, I get some....that helps reduce the overall costs, instead of waiting until we're nearly out of a given item. In these times of shortages, and ridiculous price increases, every dollar saved, helps.
 
Packerjohn said:
As for me, I would be smiling if those interest rates go up. Seniors with savings have been punished for way too long with all that "free" money that the banks seem to be promoting.
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Same here. We haven't bought anything on "time" for over 30 years. However, the money in the bank earns little more than it would hiding under the mattress.
 
Don M. said:
Same here. We haven't bought anything on "time" for over 30 years. However, the money in the bank earns little more than it would hiding under the mattress.
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I use the credit cards money for a month. I pay it off every time I get a statement. My interest in my checking acc. is.002¢ On the savings it's.30¢ every month. Like you say better than being buried in a can in the back 40.
 
Packerjohn said:
It's interesting what you said about Bose. My brother has a Bose radio and it cost a "small fortune." I too have a credit card that gives me cash back. I only got it last year but wish I had got it years ago. I think that there is a big problem with our society and that is too many people are maxed out on their credit cards. They say that average consumer debt here in Canada is $92,000. That is unbelievable! These people must be "shaking in their booths" when the media talks about interest rates going up. As for me, I would be smiling if those interest rates go up. Seniors with savings have been punished for way too long with all that "free" money that the banks seem to be promoting.
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I stopped keeping track about 4 years ago but for the few years before that, I'd earned more than $6,000 in cash back rewards. I'd probably jump off a cliff if I owed $92,000 in debt! Having that much debt has to be extremely stressful. You're right about people overusing credit and it costs them dearly in the long run. Americans are not far behind Canadians. I found this tidbit online:
"The average American has $90,460 in debt, according to a 2021 CNBC report. That included all types of consumer debt products, from credit cards to personal loans, mortgages and student debt." That's just crazy!
I did take advantage of "free money" by opening a checking account with Citibank. I like their credit card services but was "too through" with their checking services, so I closed the account after I got my $425. The promo is on again but I won't bother, even though another $425 is tempting.
 
OneEyedDiva said:
I'll tell you how to lesson the impact....don't buy stuff! 🤣 Seriously with all this talk about high inflation, my grocery bill was lowered by an average of $16 a month this year. I don't buy meat (with the exception of turkey burgers) and chicken on occasion, so I'm not taking a hit there. I also don't have car expenses; I feel sorry for you who do! I will probably feel the inflation crunch when I finally start having my floors replaced and kitchen remodeled though. :sneaky: Luckily, my investments are doing well enough (most with double digit returns) to cushion the impact. That was a good article with practical advice.
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Amen!
 

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