Prices are soaring globally. Gas prices are higher than ever, and some businesses have announced material and supply chain shortages as well. Americans are feeling the high costs. And consumers are asking the same question, how long will inflation last? Let’s find out what financial experts say.
How Long Will Inflation Last?
Brian Sozzi, Anchor of Yahoo Finance Live and Editor-At-Large of Yahoo Finance, says that inflation can continue until 2023.
One of the major reasons why inflation is at an all-time high is because of COVID. There are still bottlenecks due to port shutdowns, which are happening in Shanghai. Plus, the war in Ukraine is another driver of rising inflation rates. Sozzi also mentioned a lack of skilled workers are unable to meet high business demands after this pandemic.
What Businesses Have Said
Even Levi’s CFO, Harmit Singh, has said in an interview with Sozzi that if you want a new pair of jeans, you have to buy them NOW. Even before inflation rates have increased, Levi’s already implemented a price increase. They justify their increase due to brand value and innovation.
It’s not only Levi’s that’s having a problem; Intel has also experienced shortages on their side. Pat Gelsinger was interviewed by Sozzi on a separate occasion regarding inflation. He said they had had a “softening on the consumer side,” but they’re still experiencing ups on the business or commercial side.
If big businesses like Levi’s and Intel are experiencing this problem, small businesses have been significantly impacted by high inflation as well. CNBC talked to Kate Russell and Mindy Godding. Russell said they increased their costs to 5% (from 15% to 20%). She says that she feels bad about raising prices. Meanwhile, Godding’s employees had difficulties with gas prices and increased wages. In turn, she had to raise prices.
What Can You Do?
Sozzi proposes a solution for consumers: adapt and overcome. Unfortunately, inflation is out of our control, and the best we can do is save our money and use more affordable alternatives that won’t break the bank. Sozzi has even shared that he’s no longer ashamed that he’s eating frozen food and that you could shop at retail stores that sell items at a lower price. So, instead of going to Kohl’s, why not try Marshall’s?
What advice have other financial experts offered for individuals struggling with this current inflation situation?
Tips from NerdWallet
Chanelle Bessette from NerdWallet suggests three ways to save some money.
- Lifestyle changes – Unfortunately, with inflation lasting longer than usual, lifestyle changes ARE a must. Sozzi from Yahoo Finance did offer this advice too. But Bessette expounds by letting consumers know how to keep costs low. She cites an example– Amanda Claypool. Instead of using her car to travel, she uses a bike and eats more rice and beans. Another piece of advice Bessette offers is identifying which streaming services you no longer use and unsubscribing to them. Or, if your home expenses are higher than usual, why not try downsizing?
- Buying bonds and investing – There’s risk associated with investing, of course. However, investing your money could help you in the long run. She talked to Walter Russell, CEO of Russell and Company, regarding bonds and investments. Russell tells her that individuals should consider savings bonds, especially TreasuryDirect Series I. Having this would help you have a higher return after a year or so.
- High-Yield Interest Rates – Bessette knows it can be difficult to acquire loans during high inflation. However, she says that you can rely on banks with high-yield interest rates for your savings. The average interest rate is 0.06%. Still, it’s a good idea to put your money in a savings account, which could help you with expenses in the future.
