Updated: Sep 1, 2021
The inflation index for July was just released and it is truly frightening. July inflation 2021 over 2020 is as follows. Food: 5.4% Electricity: 4% Gasoline: 41%!, New vehicles: 6.4%, Used vehicles: 41.7% and Transportation (not including fuel):6.4% These increases have offset the raises some have experienced meaning buying power has decreased even as paychecks have risen.
Some of these may not affect you, or so you thought. We are all affected by the food and gasoline prices in a very direct way but how do the others affect you? Transportation cost will raise the cost of sending Christmas and birthday gifts. I'm sure you have seen the airplanes with the Amazon and FedEx logos. New and used cars: we may not be considering purchasing a car but the supplies are expected to be low until the end or 2023. Could your car or truck "die" before then? Could it get more and more expensive to repair a vehicle because of age but you are stuck with high repair bills because the cost of replacement is too high? Of course this also affects rental car costs which are as high as $200/day now in some areas. Electricity: all those businesses who serve you, restaurants, hair dresser, dog groomer, all rely on power, costs rise so do prices to you. What about manufactures, food preservation (canneries, frozen food, jelly and peanut butter manufactures), clothing, medications, lumber yards, all rely on power, all will raise prices to help offset the increased costs.
Stock up now! Don't wait. Make some sacrifices now to prepare for higher costs and limited supplies in the future. Review: Answering Questions:What to Stock up On and the Dollar store posts.
How are increased prices affecting you?