How to See Through Inflation Prices

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There are probably some goods or services that you have been buying regularly for years or even decades. And over time you probably familiarize yourself with the cost of these things and, in turn, whether something is cheap, overpriced, or looks okay.

But lately, especially since the annual inflation rate hit a four-decade high of 8.5% in March – nothing seems like good (or even decent) value. As frustrating as that sounds, it also makes sense in the current circumstances, according to a recent article from the the wall street journal. Here are some strategies for coping with our new financial reality.

Understand (and accept) that prices will change

According to Scott Rick, an associate professor of marketing at the University of Michigan who studies financial decision-making, the current rate of inflation is particularly shocking to people under 40which he says have never seen such a price hike before.

And unfortunately, that’s something everyone will have to get used to. “There’s no going back to the way things were” he told the Wall Street Journal. “You have to update and roll with it.”

Thus, instead of stubbornly refusing to adjust our perception of prices should being, Rick says it’s important to understand and accept that rethinking our concept of what constitutes good value is an ongoing process.

Keep doing your research

But accepting that costs will continue to rise over time doesn’t mean we should stop doing our homework before making a major purchase, David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, points out in the same Wall Street Journal article.

During a time with this kind of inflation, it’s easy to approach big-ticket items thinking that since everything is expensive now, there’s no point in spending the time and effort to find them at lower prices, explains he.. ButThese people are more likely to accept the first price they come across, which may not be the best value, Wessel adds.

Instead, he recommends do price comparisons and a lot of researchincluding asking friends or peers what they paid for similar items.

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