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Tips for managing your finances as nation faces inflation

CPI is highest it’s been in 40 years

The Bureau of Labor Statistics released the latest Consumer Price Index on Tuesday.

The CPI monitors how much people are paying on average for goods and services. It’s the highest it’s been in 40 years.

Gas is up 48% in the past year. Used car prices are up 35% and airfare costs are up 24%. Even the cost of oranges is up 18%.

There is some good news in the report though. Used car prices are down just a little, and some experts believe that this is a spike -- that inflation going forward shouldn’t be this bad.

Katie Bossler is an advisor at GreenPath, a credit counseling company. She said now is the time to get serious about reigning in spending.

Read: How to save money at the grocery store as food prices soar

She suggests going back to the basics. Look at shopping lists, hold off on big expenses, buy smart, buy in bulk and use points at the gas pump.

You always want to pay your secured debt. That’s the stuff you can have taken away if you don’t pay: Mortgage, rent and auto loans.

Unsecured debt is not going to lead to serious trouble right away, so that’s where you can help yourself in the short-term.

Not paying your credit card bill can ruin your credit score. Call your credit card issuer and ask if they can help you out for a short amount of time to get through the inflationary period. Credit card companies may be more understanding than you think.

Read: Tracking gas prices in Metro Detroit: How to find cheapest, let us know what you find

Information to help you cope with and understand inflation:

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About the Authors

Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.

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