The U.S. Labor Department reported today that food and gas prices are skyrocketing along with unemployment rates. People all over will need to tighten their belts and do it quickly. What is actually happening and how can you save and stay ahead? Here are some answers and ideas.
Overall, according to the Labor Department’s report, consumer prices overall rose 0.3 percent in March. That is a list of all consumer goods, from french fries to potting soil. Inflation is up a whopping 4 percent from the past 12 months. The two biggest increases that we see for prices are energy costs, which are up by an astronomical 17 percent and food prices, which are up 4.4 percent.
Individual food prices for some items are even more scary. The price of bread rose 14.7 percent and the price of milk rose 13.3 percent. Vegetables are now rising as well, with a 2 percent increase in vegetable prices in March. Beef prices are up by 0.6 percent.
Rising job layoffs contributed to a jump in the unemployment rate to 5.1 percent in March. Existing wages are reported as “stagnant.”
As you may expect, construction of new homes plummeted to the lowest levels in 17 years. Airline tickets rose by 3 percent last month because of the high fuel prices. This is the biggest rise in ticket prices in the last six years.
There is one area of goods in which prices fell. That is clothing. As people need their money for food and gas, they are less likely to use it for clothing. Clothing costs fell 1.3 percent in March.
Coming up later today, I will address each of these economic factors and give you plenty of advice and ideas for overcoming the the rising prices, or at least some strategies to help you get by these days.
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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