ROCHESTER, NY (WROC) – Whether you’re hitting the gas pump, grocery shopping or shopping for necessities, the price only seems to be going up over the past year.
News 8 spoke to consumers, and for many people, even cutting back on small things like less travel, going out to dinner, or avoiding long-distance drives to save gas isn’t enough these days.
Local economists explain how to maneuver through this, think long term with your money.
“I don’t know how people can pay rent sometimes,” Monroe County’s Jane Manno told us. “It makes things difficult.”
“I have to stop eating out, which is sad because I love supporting independent restaurateurs,” added Amy Harned of Rochester.
“We stopped eating so much at restaurants and learning to cook while staying at home,” explained Robert Lane.
Every month, consumers can expect to pay up to $300 more for basic necessities. Local financial experts say it’s all due to big increases in demand but insufficient supply as America tries to fully reopen its economy.
“I know of realtors working for developers who can’t sell homes because they can’t get the components needed to complete the homes,” said Jeff Briggs, CEO of Rochester Wealth Management. “Just a few years ago there were nearly two thousand Riggs pumping oil. Now we have about 500. Not enough production and they shut down a pipeline, that’s going to have an impact.
When it comes to putting your money into investments or saving for retirement plans, economists are urging people to think long-term and stay in the game because prices are bound to come back down eventually. But avoid keeping all your money in the form of dollars because they lose their value in times like these.
“It’s more important that the dollar stay high than watching the rate of inflation,” Briggs explained. “Because if the dollar goes down, purchasing power goes down.”
International conflicts, such as the threat of an invasion of Ukraine by Russia, which drove up oil and gas prices today, are another key element to hold on to. Additionally, the protest at the America/Canada border preventing the delivery of many auto parts to factories has driven up the cost of purchasing a new vehicle.