Most Americans are beginning to see the impact that surging inflation is having on their wallets, according to a new survey from market research company Datassential.
Inflation rose to yet another new 40-year high in February, during which the Consumer Price Index (CPI) rose to 7.9% annually. It marked the highest inflation rate increase since January 1982, according to the U.S. Bureau of Labor Statistics (BLS), also surpassing records set the previous two months.
Nearly all the respondents in Datassential's survey (96%) said that they're noticing signs of higher prices in the U.S. economy as of March 2022, up from 82% in May of last year. Specifically, more women (97%) than men (96%) said they see the effects in the broader economy, and 99% of Boomers said that they did, too.
The Federal Reserve is raising interest rates for the first time since 2018 as a way to combat inflation. If you're looking to pay off high-interest debt before rates go up, you could consider taking out a personal loan. Visit Credible to find your personalized interest rate without affecting your credit score.
How long will inflation last? Americans prep for the long-haul
As inflation continues to rise, many Americans expect it won’t let up anytime soon, according to the survey. About two-thirds of U.S. consumers said they expect no relief from inflation until at least the end of the year. Forty-three percent said that they expect inflation to last into 2023, or even longer.
This consumer sentiment appears to fall in line with Treasury Secretary Janet Yellen’s prediction that inflation is will likely remain "very uncomfortably high" for another year.
"We have seen a very meaningful increase in gas prices, and my guess is that next month we’ll see further evidence of an impact on U.S. inflation of Putin’s war on Ukraine," Yellen said during an interview on CNBC's "Closing Bell."
Consumers who want to take advantage of current interest rates before they increase could consider taking out a personal loan to pay off high-interest debt. Visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.
Strategies to help cut costs as inflation rises
Inflation has caused many commodities to grow more expensive, and cutting back in these areas can minimize consumers’ exposure to rising inflation and decrease financial uncertainty. According to Datassential's survey, some areas in which consumers say they've cut back in spending include restaurant meals, travel and gasoline. Specifically, 49% of respondents said they've cut back on restaurant spending, 37% on travel and 32% on gas.
The national average price of gas, of note, remains above $4 per gallon, according to Triple-A. That's nearly $2 more than the average price of regular gas in 2021.
As consumers look to cut back on expenses, there are other areas they can consider such as refinancing their loans. Current homeowners can refinance their mortgage to potentially save hundreds of dollars on their monthly payments, and borrowers of student loans can also consider refinancing to lower their monthly payments.
Paying down high-interest debt can also help free up your monthly budget. A personal loan can be a useful in consolidating debt you may have, in addition to paying for large expenses or home improvements. Contact Credible to speak to a loan expert and get all of your questions answered.
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