Most Americans are seeing the effects of inflation, polls show, and many expect no relief

Most Americans say they are seeing the effects of soaring inflation, according to a new survey, and many are cutting spending in some area. (iStock)

Most Americans are starting to see the impact of soaring inflation on their wallets, according to a new survey from a market research firm essential data.

Inflation has reached yet another new high of 40 years in February, during which the consumer price index (CPI) rose to 7.9% per year. This is the largest increase in the inflation rate since January 1982, according to the US Bureau of Labor Statistics (BLS), also topping records set in the previous two months.

Almost all respondents to Datassential’s survey (96%) said they were noticing signs of rising prices in the US economy from March 2022, up from 82% in May of last year. Specifically, more women (97%) than men (96%) said they saw the effects on the wider economy, and 99% of baby boomers said they also saw the effects.

The Federal Reserve is raising interest rates for the first time since 2018 to fight inflation. If you’re looking to pay off high-interest debt before rates rise, you might consider taking out a personal loan. Visit Credible to find your personalized interest rate without affecting your credit score.

INFLATION REACHES ANOTHER 40-YEAR HIGH IN FEBRUARY

How long will inflation last? Americans prepare 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 US consumers said they expected no relief from inflation until at least the end of the year. Forty-three percent said they expected inflation to last until 2023 or longer.

This consumer sentiment seems to match the Treasury Secretary Janet Yellen’s prediction that inflation is likely to remain “very uncomfortably high” for another year.

“We’ve seen a very significant increase in gasoline prices, and I suspect next month we’ll see further evidence of an impact on US inflation from Putin’s war on Ukraine,” he said. Yellen during an interview on CNBC’s “Closing Bell.”

Consumers who want to take advantage of current interest rates before they rise might 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.

YELLEN SAYS INFLATION IS ‘LIKELY’ TO BE ‘VERY UNCOMFORTABLY HIGH’ FOR ANOTHER YEAR

Strategies to help reduce costs as inflation rises

Inflation has raised the price of many commodities, and reductions in these areas can minimize consumer exposure to rising inflation and reduce financial uncertainty. According to Datassential’s survey, some areas where consumers say they have cut back on spending include dining out, travel, and gasoline. Specifically, 49% of respondents said they had cut back on dining out, 37% on travel, and 32% on gas.

It should be noted that the national average gas price remains above $4 per gallon, according to Triple-A. That’s almost $2 more than the average price of regular gasoline in 2021.

As consumers look to cut spending, they may consider other areas, such as refinancing their loans. Current owners can refinance your mortgage to potentially save hundreds of dollars on their monthly payments, and student loan borrowers can also consider refinancing to reduce your monthly payments.

Paying off high-interest debt can also help free up your monthly budget. A personal loan can be useful for consolidating your debts, in addition to paying for major expenses or home improvements. Contact Credible to speak with a loan expert and get all your questions answered.

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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