How Inflation Will Impact Your Finances in 2022

Inflation has been a big topic this year. Used car prices have gone up more than 30%! Energy prices have risen 33.3% since November 2020. Gasoline is up 58.1%. Clothing costs have risen by 5%. Food prices have increased by 6%. Even if the government attempts to step in and combat inflation, it is not something that can be “fixed” overnight.

But inflation is only part of the problem. Even without inflation, world events like the current tensions between Russia and Ukraine could continue to cause gasoline prices to rise. Lingering COVID variants cast uncertainty on the future. Although we are unlikely to see additional lockdowns as we saw in 2020, companies and financial markets will make decisions based on these lingering issues that could still influence your household budget moving forward – whether it be increased prices or not getting the raise that you were hoping for. There are also supply chain issues that seemingly have no end in sight. Bloomberg and other news outlets have outlined the above in great detail, and I encourage you to read up on it.

All that being said, now is not the time for you to panic. The above problems do not mean there are no solutions. But it *does* mean that you need to be proactive! The door will only shut on potential solutions the longer you wait, so act now and talk to someone who knows what options are out there to review and solve your financial concerns.

As always, RQP Law is available at 610-323-5300 for a stress-free consultation.