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7 Products Being Slammed by Inflation (and How to Avoid Spending More)
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After years of historically low inflation rates, consumer prices rose 4.2% year over year in April—the largest increase since the financial crisis of 2008. While price inflation was expected, given the ongoing post-pandemic recovery, some products have seen much more dramatic hikes—we’re talking spikes of 15–30%—due to surging demand and troublesome supply chain issues. Here’s a look at what products are services are likely to be squeezing your wallet right now, along with some tips for staying on budget.

Meat

Meat
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The cost of grocery items has climbed 2.4% overall in the last year, but the jump in retail meat prices has been much more dramatic. Compared to April 2020, pork prices are up 11%, bacon prices are up 16.3%, and beef prices are up 4.8%. Poultry prices are 11% higher than last year, and that includes the prices for wings, which hit a record $2.92 per pound—180% higher than they were in early 2020. If your food budget is feeling pinched, it may be time to start exploring ways to adjust your diet to include less meat, or, barring that, how to spend less on the meat you do buy. It’s that, or dip into your discretionary budget to cover the increased costs.

Gasoline

Gasoline
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The less you can drive, the better it is for your wallet. A ransomware attack on Colonial Pipeline has exacerbated gas prices, which have increased by 14% in the last week. It hasn’t been a short term problem either—after hitting historic lows in 2020, the average price of a gallon of gasoline in the U.S. has risen above $3 for the first time since 2014, according to the AAA. With the Colonial Pipeline back in service, some experts believe that prices should stop rising, or at least flatten out by Memorial Day. In the meantime, if you need to fuel up, there are a number of apps to help you find the cheapest pumps around.

Homes

Homes
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The market is overheated due to a lumber shortage, inadequate housing supply and pent-up demand. It’s not easy to buy a home in a seller’s market, right now, especially when bids coming in for as much as $400,000 above the asking price, sight unseen. If you’re committed to buying a property in a hot market, expect the search to be months, not weeks—and here’s our advice on how to make that process a bit less painful.

Lumber

Lumber
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Sawmills shut down lumber production early in the pandemic, creating a shortage of lumber that’s being compounded by the booming real estate market. The price for lumber has soared by 377% in the last year, adding as much as $36,000 to the price of a newly built home. You might want to take a wait-and-see approach if you’re planning any extensive home renovations, as some analysts think that lumber prices will drop back down to Earth later this year.

Computer chips

Computer chips
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Consumers stocked up on personal computers and other tech during the pandemic, contributing to a chip shortage that has limited the production of PS5s, Apple gadgets, and even new automobiles. If you’re buying new gear, don’t be surprised if you start seeing more “out of stock” signs. Retail prices for electronics have recently started to climb, too, led by the price of big screen TVs, which are 30% more expensive than they were last year. You best bet to save here is to look ahead to major holidays, when retailers are still likely to offer promotions of these sorts of items—and hey, Amazon Prime Day is (probably) just around the corner.

Used vehicles

Used vehicles
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Used cars and truck prices increased by 10% last month, accounting for over a third of the overall inflation increase the U.S. notched in April. In a perfect illustration of how supply chains are intertwined, a lack of computer chips has led to a reduced production of new cars, which has reduced inventory on used car lots, sending already high prices of used car prices further skyward. Unless you really need a car, it’s probably a good time to hold off on buying anything right now—but if that’s not an option, it might actually make sense to buy new instead. (But whatever you do, don’t pay over sticker price.)

Rental cars

Rental cars
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Rental car companies sold a big chunk of their fleets during the pandemic, and that’s created a shortage exacerbated by post-pandemic demand for travel. Unfortunately, that means you can expect to pay three times the cost of pre-pandemic prices for rental cars. Though driving is usually cheaper, it’s worth considering other modes of travel if you need to get around, as there are some good deals to be found—like Amtrak’s 20% sale and Southwest’s $50 flights.