Inflation presents significant financial challenges for retirees living on fixed incomes, as rising costs strain budgets. Although Social Security has a Cost of Living Adjustment (COLA) built in, Social Security was never meant to be your only source of income after retirement, but rather it was intended to supplement your other retirement income. This article will explore key areas most affected by inflation, such as food, energy, healthcare, and discretionary spending, and provide practical tips to help you adapt. For those planning to retire in 2024 or the next few years, identifying and managing everyday expenses is more important than ever to maintain financial stability. #1 Keeping … [Read more...]
Inflation-Proofing Your Family Budget
After a sustained period of post-COVID inflation, prices for household goods and food have begun to stabilize between two and three percent. However, if you happen to have dug out an old receipt from a pre-COVID food shop, you may be shocked to see how much more you pay for everyday items and ingredients. This is because the effects of inflation are cumulative and compounding. So, three consecutive years of 2% inflation results in more than 6% cumulative inflation and if you throw in one year of 9% inflation prices really soar. The rapid change in food prices is largely driven by a 2022 spike in inflation, which saw the average grocery bill rise by 9.9% in a single year. While a few … [Read more...]
How Inflation Is Reshaping the Job Market for New Entrants
As you enter the workforce, there are myriad challenges and strategies to navigate — particularly around finding a job in the first place. Inflation rates only complicate this intricate dance you are doing to land a career as a recent graduate or new professional on the scene. Whether you’re sure or unsure about your career path, there are plenty of opportunities to be found in the current job market. Although the rate of rising prices changes things a bit, there are ways to be savvy about the system and land the job of your dreams. The Current State of Inflation and Wages There always seems to be a debate over whether or not wages are keeping up with inflation. However, it’s not always a … [Read more...]
Not All Prices Have Inflated Since 1964
Recently I came across a Newspaper ad from 1964 which coincidentally is almost exactly 60 years ago. So, I thought I would look up how much inflation we've had in the last 60 years. According to the U.S. Bureau of Labor Statistics (BLS), total inflation from November 1963 to November 2023 is 896.92%. So, $100 after adjusting for inflation is $996.92. Therefore, we would expect everything to cost about 10 times as much as it did in 1963. Note: We've used November 1963, and November 2023 because that is the most recent data from the U.S. Bureau of Labor Statistics. The advertisement that got me started on this trip down memory lane was for a 1964 RCA Color Television. In those days … [Read more...]
Gasoline Prices vs. Wages Over Time
Historical Gasoline Prices in Pictures-- I thought it would be fun to look at some pictures of gasoline prices in days gone by. Of course, we have to remember that salaries were much lower in those days as well. Inflation doesn't affect all prices equally. Let's look at how Gasoline Prices and Wages relate since the 1920s. In 1924 my grandfather probably paid around 21 cents a gallon for gasoline. The average wage was about 62.6¢/hour. But that was just the average, a unionized carpenter in Boston would have made a whole Dollar an hour. Imagine paying 15½ cents for a gallon of gasoline. Although we don't have an exact date for these pictures, we can estimate the … [Read more...]
July 4th Cookout Will Cost You 17% More in 2022
Whether you call it a "cookout", "grilling", or a "barbeque", cooking over an outside fire with family and friends on Independence Day is an American tradition. Every year the American Farm Bureau tracks how much the July 4th Cookout family gettogether is going to cost and it's no surprise that the cost is up this year. But what may be a surprise is how much it is up! According to the U.S. Bureau of Labor Statistics (BLS), annual inflation is 8.6%. But according to the Farm Bureau survey the cost of your July 4th Cookout will cost you 17% more in 2022. It is always nice when we can get some independent data on prices. Every year Farm Bureau enlists volunteers from around the country to … [Read more...]
Inflation Adjusted Gasoline Hits New High
June 10, 2022 Update: AAA says the national average is now almost $5.00 a gallon (and much higher in places like California). That moves the blue dot on the chart below up and prices are now well above inflation-adjusted peaks! June 2, 2022 It's no secret that gasoline prices are skyrocketing. However, a couple of months ago we said that although gas prices were high and rising, they still weren't at record levels when looked at in inflation-adjusted terms. But all that has changed now as gasoline prices continue to climb upward. Today the AAA reported the highest national gas prices they have recorded. Although this is a significant development, all sorts of … [Read more...]
How Families Are Adjusting To The Crazy Inflation Rates
On April 12th of, 2022, the U.S. Bureau of Labor Statistics (BLS) announced that the annual US inflation rate had reached a record high of 8.5%, a level not seen since December 1981. This level of rapid price increase is being felt all over the nation and even in Europe. Those with low incomes are having the hardest time adjusting to the rapidly increasing cost of living, as is often the case. But working families across the nation are also being forced to adapt and change in order to cope with rising prices. This has impacted every corner of our society, from gas to prices at the grocery store. Adjusting to this level of inflation hasn’t been easy, and here is how some families are looking … [Read more...]
The Travel Industry, the Pandemic and U.S. Inflation
Inflation has been apparent in the United States, making many people worry about financial stability in the nation. With the COVID-19 pandemic, there have been rising prices, labor shortages, and people wary about spending. In this overview, we’ll explore how the U.S. inflation brought on by the pandemic has contributed to changing the financial and business landscape of the travel industry. At First Glance “The pandemic not only caused the shutdown of many companies and organizations but had also discouraged consumers from traveling to abide by social distancing mandates,” says Kendra Banks, a business writer at Uktopwriters. Rising airfares, price hikes on used vehicles, and people … [Read more...]
Price and Wage Changes since 2000
When we think about price changes we often think of them in terms of the changes in the Consumer Price Index (CPI-U for all Urban Consumers). Looking at it that way, we may get the idea that price movements are monolithic i.e. that they all move together, so "prices" were up 2% or 5% or whatever, over the last 12 months. But that is a bit misleading since prices all move independently. For this reason, the U.S. Bureau of Labor Statistics publishes a CPI database with a breakdown of all the various components. By analyzing the various components of the CPI over the last 20 years we developed the following Chart. Click Chart for larger image As we can see … [Read more...]
