If you’ve been suffering from post-pandemic sticker shock, you are not alone.
From gasoline and groceries to computers and clothing, everyday items are suddenly more expensive.
The country is recovering in the wake of the coronavirus outbreak and Americans put theirs Stimulus checks and Cash stowed away Some of these higher costs are easy to work with the price that consumers have to pay for economic recovery. (In other words, As the economy recovers, so does inflation.)
In other cases, setbacks in the supply chain have weighed on certain goods, which also drives up prices. but only temporarily.
“It’s kind of like the consumer version of musical chairs. There’s a bit of a rush for a limited range of things,” said Mark Hamrick, senior economic analyst at Bankrate.com.
But not everything gets dearer forever, said Hamrick. And if you’re considering making a larger purchase, it might be worth waiting for.
Here are some examples:
Anyone considering a bathroom remodel or kitchen renovation will see dramatically higher raw material prices.
The sky-high demand for home improvement coupled with the slowdown in the supply chain has caused some building materials, including lumber, steel, plaster of paris and copper, to hit record highs this year.
A broad mix of building materials for residential buildings has increased by 12.4% in the last 12 months according to the producer price index.
As a result, nearly half of all home builders say they add Escalation clauses According to a recent survey by the National Association of Home Builders about their selling prices due to rising material costs.
“It’s an unusual time triggered by the pandemic,” said Jack Kleinhenz, chief economist for the National Retail Federation. “I think people are realizing that we should wait a bit for things to get better.”
But when you think of it get away Instead of renovating your home, you’re out of luck.
A sudden increase in wanderlust after the pandemic also makes vacation more expensive.
Domestic fares are up 9% since April 1, while international fares are up 17%, according to recent research from Amber. And an increase in bookings drives prices up even further.
Hotel prices are also higher and even have Prices exceeded before the pandemic in some popular travel destinations, according to travel booking technology company Koddi.
Consumers with Coupons from last year’s canceled plans might take a break if they can use those credits.
“Many of us likely have stored value in services that we didn’t use during the pandemic,” Hamrick said. “At least it’s worth asking.”
If this happens, however, make reservations sooner rather than later, before flights and hotels are fully booked for the summer – or worse, those vouchers will expire.
Those who plan to hit the open road now The restrictions related to pandemics have been lifted can fail at the dealer.
High consumer demand and the lack of manufacturing microchips – vital parts needed to power today’s cars – have put new car inventories at dealerships across the country under pressure. And the used car market isn’t much better.
New cars cost an average of $ 40,000 in April. according to Kelley Blue Book, an increase of around 2.2% compared to the previous year. At the same time, the typical cost of a used car is now around $ 23,000. after Edmunds.
“New vehicles – especially new trucks and SUVs – are basically the same as toilet paper and hand sanitizer a year ago in 2021,” said Jessica Caldwell, Edmunds’ executive director of Insights, in a statement.
The Chip shortage This is expected to only affect production until the end of summer or early fall, and prices generally drop towards the end of the year and into January as sellers try to unload last year’s models .
“Most of these price increases are temporary, so consider carefully whether it is worth diving into your savings and paying a premium,” said Anand Talwar, manager of deposit and consumer strategy at Ally Bank.
“Instead, wait for inventories to rebuild and prices to fall,” he advised.
“If the pandemic has taught us anything, it is that your emergency fund is not good to have, it is necessary,” Talwar said.
To get there, consider setting up an automatic deposit to your Rainy Day fund, advised Talwar.
“You will build and maintain your financial freedom and prevent last year’s hard-won savings from coming out the re-opening door.”