A trip to the grocery store or to the gas station could start costing more than it used to, as inflation is expected to rise. So who should we blame for higher priced food and fuel? Europe! Experts say it’s their fault for having the nerve to be suffering from a debt crisis.
SmartMoney says inflation stayed flat in December, but according to Robert Schmansky, founder of Clear Financial Advisors, “no one really believes that inflation has subsided,” and in fact, it’s 3% higher than a year ago. The costs of gas and food will continue to rise, and contribute to inflation, say experts, all because of Europe’s economic woes.
David Abuaf, chief investment officer at Hefty Wealth Partners, laid it all on the line for SmartMoney:
Until there’s some sort of solution in Europe, the value of groceries and gas here will rise,” he says, predicting that gas will jump another 10% and food 4.7%, the same rate as last year. “The price of everything from cotton to pig will be more expensive.”
Rising prices at the local supermarket will most likely push consumers to head for big box store and stock up on bulk items to cut costs, which is bad for small grocery stores but can save money for consumers. Looking for deals, conserving and saving is the way to go, says Schmansky, as well as using gas price trackers like GasBuddy.com to find where fuel is cheapest.
Blame Europe For Higher Grocery Bills [SmartMoney]