How to Prevent Inflation from Draining Your Wallet! - Cabot Wealth Network

How to Prevent Inflation from Draining Your Wallet!

Get the best advice for beating inflation today—when you read the July 2022 issue of our magazine, just released!

July 2022 CMC Magazine Cover

Remember when COVID fees like disinfection charges, personal protection equipment fees, and other miscellaneous charges were added on to restaurant tabs? One of the steepest charges was the “temporary COVID-19 Recovery Charge” of up to 10% of total bills in New York City, approved by the New York City Council. During the pandemic, these fees were life-saving tactics for many businesses—restaurants in particular—that saw their sales drastically erode.

Those excess fees mostly disappeared as restaurants reopened and customers returned. Now with 40-year-high inflation causing both supply and labor costs to soar, menu prices are creeping up.

And lately, on top of those inflated food prices, we have the return of “special fees” at restaurants. But food establishments aren’t the only merchants or service providers that are levying these “taxes.” Honestly, although I realize that inflation is taking a big chunk out of our pocketbooks right now, I was even taken by surprise by the new—and sometimes, hefty—extra fees I’m seeing that directly affect both consumers and businesses.

Changes in prices for select goods and services, April 2021-April 2022

SELECT GOODS AND SERVICES PRICE CHANGE
Gas 43.6%
New cars 13.2%
Groceries 10.8%
Clothing 5.4%
Housing 5.1%
Health care 3.5%

Source: U.S. Bureau of Labor Statistics

Consumers Are Taking Direct Hits to Their Pocketbooks in These Areas

  • Restaurants: According to the Food and Agriculture Organization of the United Nations (FAO), April’s world food commodity prices rose 29.8% from a year ago, primarily due to the Russia-Ukraine war’s impact on staple grains and vegetable oils. According to point-of-sale software developer Lightspeed, “the number of restaurants adding service fees rose by 36.4% from April 2021 to April 2022.” And the fees aren’t lightweight. For example, Romano’s Macaroni Grill recently added a $2 “temporary fee” to its restaurant tickets. Sometimes, this surcharge shows up as a higher delivery fee, can be called a “kitchen appreciation” fee, or may be directly tied to certain menu items that have higher costs. What You Can Do: Get specific advice about how to battle increasing restaurant bills.
  • Groceries: Grocery costs are up 10% year over year (as of March 2022), according to Bureau of Labor Statistics data. All food categories increased in cost, but some foods have been hit harder by inflation: Meat costs were up 14.8%, fruits and vegetables 8.5%, and pasta and rice 9.3%. What You Can Do: Learn about making a food budget; developing a cost-conscious meal plan; and shopping for value.
  • Gas: As if gas wasn’t already at ridiculous prices ($5.16 a gallon for regular, as of yesterday, according to AAA), now we are being hit with surcharges! I was actually planning to take a couple of long-desired driving trips this summer—one around Lake Superior and the other down the Natchez Trace. But the rise in oil prices—and now surcharges—have led me to pursue some staycations or shorter trips. What You Can Do: Get specific strategies for battling high gas prices!
  • Airlines: You might as well forget those cheap airfares of the pandemic. They are gone. Blame the rising price of oil, accompanied by new fuel surcharges. The Bureau of Labor Statistics reports that the consumer price index for airline tickets has shot up by 25% in the last year—the biggest leap since the Federal Reserve of St. Louis began tracking the index in 1989. And just in April, airfares soared 18.6%. What You Can Do: Travel on airlines with the lowest fuel surcharges—get lists of airlines with the highest and lowest fuel surcharges in this article now! Plus, the best airline loyalty programs and specific strategies for saving money when planning travel.
  • Lodging: The Bureau of Labor Statistics reports that hotel prices are up 29% from a year ago. As you can surmise, taking a flying/hotel/rental car vacation just became a lot more expensive! What You Can Do: Get specific advice in this article now!
  • Mortgage Loan Rates: As soon as the Federal Reserve began raising the short-term Federal Funds rate in March, mortgage lenders didn’t waste any time boosting mortgage interest rates. As of the end of last week, the average nationwide 30-year fixed rate hit 5.23%. What You Can Do: Get five specific strategies for getting the best mortgage deal—in this article now.
  • Credit Card Interest Rates: If you think that mortgage rates rose pretty quickly, you’re going to be downright amazed at how fast your credit card interest rates are increasing. What You Can Do: Get five powerful tips for avoiding wallet-draining credit-card interest.

Read the feature article in this month’s magazine now and get five more tips for combatting inflation:

And a whole lot more in this article about how to save and invest in this inflationary environment!

Read this article now to learn how to beat inflation today—and get everything else in this issue of our magazine, including:

  • 3 Ways to Combat an Uncertain U.S. Dollar: A strong dollar has helped cap some inflationary pressures in the U.S., but with the arrival of volatility in currencies you should consider these investments as hedges against an uncertain dollar. Read about these investments now in this article.
  • 4 Copper Plays on the Electric Vehicle Revolution: Electrifying more of our economy will help address climate needs while possibly heralding the arrival of a new commodity super-cycle. These copper investments can help you profit from it.—read about them right now.
  • A Low-Risk Way to Profit in a Down Market: We’re officially in a bear market, but this options strategy can help you take advantage of higher premiums and make profitable trades— revealed for you now when you read this article!
  • Why You Should Buy Inverse ETFs Now: Instead of simply trying to wait out this bear market, consider adding inverse ETFs to your portfolio to boost and smooth your returns. Learn how in this article now.
  • Are Small-Cap Stocks Bargains or Untouchable?: Small-cap stocks have been lagging their larger peers for months—is that enough to make them bullish in this bear? Get the full story when you read this article now.
  • 2 Cheap Dividend-Paying Tech Stocks to Buy Now: Tech stocks have taken it on the chin for much of this year, but that’s turned these tech stalwarts into high-yielding bargains. Discover the identity of these stocks when you read this article now.
  • Why Marijuana Stocks are Way Oversold: On an absolute basis, cannabis stocks have become incredibly cheap, but does that make them good value buys? Let’s compare them to other “sin” stock industries—get the details in this article now.
  • Why You Should Listen to Peter Lynch on Popular Stocks: Peter Lynch famously advocates that investors “buy what they know,” which is good advice … just not always. Find out why in this article.
  • 4 Tips for Weathering this Market Correction: The investing environment is tough, and macro events are largely outside of our control, so keep these tips in mind to preserve both capital and sanity in the turbulent market. Get the tips when you read this article!
  • This Rare Breed of Stocks Outperforms the Market by 5-to-1: You may not be familiar with market anomalies, but one type in particular regularly outperforms the market, at times by as much as 5-to-1—find out in this article now!

This latest issue of our Magazine is ready for you to access now, to find out how to beat today’s inflation … and much more.

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