You can calculate how you and your family will be affected by the highest levels of inflation in 40 years. What you eat, how much you travel, and other consumption habits are one of the factors that make a big difference. Here’s a way to calculate your personal inflation rate to understand how inflation affects you.
• Use credit card invoices, receipts, and bank statements to identify how much you spent on food, housing, gas, entertainment, apparel, education, and other items in April 2022. Not sure what to include? Check out the US Bureau of Labor Statistics spending list that makes up the Consumer Price Index. Includes eight major groups of food and beverages, housing, apparel, transportation, healthcare, recreation, education and communications, and other goods and services.
• Sum up spending for April 2022.
• Look back at the same month one year ago (April 2021) and add up your spending for that month.
• Subtract total spending from April 2022 to April 2021.
• Divide the difference by the monthly cost for April 2021.
• The result is your personal inflation rate.
How does your personal inflation rate compare to the national average?
The US Bureau of Labor Statistics uses the Consumer Price Index (CPI) to measure inflation and publishes this data monthly. The CPI for “Consumers in All Cities” has increased by 8.3% in the last 12 months to April. Specifically, the consumer price index in April rose 1.2% in March, followed by a seasonally adjusted rise of 0.3%. Rising shelters, food, airfare and new car indexes were the biggest contributors to the rise in all seasonally adjusted items.
Depending on how you spend your money, your personal inflation rate may be better or worse than your current CPI index. Where you live can also play a factor in how inflation affects you. For example, real estate prices make buying a home in some areas very expensive.
Tips for minimizing the effects of inflation
• If inflation is having a serious impact, there are a few things you can do to minimize its impact. Here are some recommendations:
• Reassess your budget to reduce unnecessary expenses as much as possible.
• Postpone high-value purchases. Prices will drop over time, so if your wallet hurts now, you may want to postpone your bulk purchase. If you need to buy and are tied to cash, it is advisable to move quickly before interest rates rise further. Low interest rate personal loans or fixed rate home equity loans can offer fixed monthly payments to help you budget.
• Reduce grocery costs with the coupon app, buy sale items in bulk, and buy generic brands.
• Integrate high interest rate credit card liabilities with low interest rate balance transition credit cards. Benchmark Federal Credit Union currently offers VISA Platinum Credit Cards. This card has a 0% APR for purchases and balance transfers for up to 12 months. As an additional benefit, the borrower will not be able to benefit from the annual card or balance transfer fee.
• If it fits you and your family, consider a side job to better match your income with your expenses.
Rebecca Worthington is Vice President of Community Relations at Benchmark Federal Credit Union. Benchmark FCU, the only federal credit union that exclusively serves Chester County, has been servicing the community for over 80 years and is known for its exceptional service. For more information on the products and services available with Benchmark FCU, please visit our website BenchmarkFCU.org. Anyone who lives, works, worships, or attends school in Chester County, Pennsylvania is eligible to join the Benchmark Federal Credit Union.
Individual Inflation Rate Calculation-Daily Local
Source link Individual Inflation Rate Calculation-Daily Local