Tariffs, Inflation, and Your Pocketbook
We are already seeing some rising prices for certain goods and services due to the China tariffs. Food and energy are just two areas. Tariffs generally hit prices hardest at the time they are levied and therefore we tend to see a one-time “jump” in price for those goods and services. Longer-term inflation may not necessarily be greatly impacted by these tariffs. Therefore, we may not generally see a big rise in rates from the Fed this fall as a result. Things that might push prices higher for the longer-term are areas such as the increasing costs of health insurance, which is expected to rise significantly next year. Rising costs, however, whenever they arrive do impact the consumer pocketbook and may erode the ability to save. As always, being prudent with spending, the accumulation of debt, and seeking to save for “rainy days” may help keep pocketbooks from emptying too quickly.
This information is provided for general educational purposes only and is not intended as specific advice for any individual.
Seek professional advice before taking any action in regard to your finances.