{"id":116422,"date":"2021-06-14T17:33:49","date_gmt":"2021-06-14T17:33:49","guid":{"rendered":"https:\/\/fin2me.com\/?p=116422"},"modified":"2021-06-14T17:33:49","modified_gmt":"2021-06-14T17:33:49","slug":"americans-inflation-fears-reach-a-fever-pitch-as-consumer-prices-rise","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/americans-inflation-fears-reach-a-fever-pitch-as-consumer-prices-rise\/","title":{"rendered":"Americans&#x27; inflation fears reach a fever pitch as consumer prices rise"},"content":{"rendered":"<ul>\n<li>Fears of inflation in the year ahead hit its highest level on record, according to a report by the Federal Reserve Bank of New York. \u00a0<\/li>\n<li>When inflation rises, savers may consider alternatives for stashing cash.<\/li>\n<\/ul>\n<p>As the economy quickly picks up steam in the wake of the Covid pandemic, Americans expect inflation to jump in the months ahead.<\/p>\n<p>Overall, the expectation is that the inflation rate will be up to 4% one year from now \u2014 a new high for one-year-ahead inflation expectations \u2014 and at 3.6% three years from now, the highest level since August 2013, according to the Federal Reserve Bank of New York&#x27;s Survey of Consumer Expectations for\u00a0May.<\/p>\n<p>Expectations for how much more consumers will spend on homes, food, rent, gas and the cost of a college education all rose in the most recent report.<\/p>\n<p>At the same time, consumers surveyed by the New York Fed\u00a0also expected household income and spending to increase, particularly among households with annual income of more than $100,000, the central bank said.<\/p>\n<p><strong>More from Personal Finance:<\/strong><br \/>One-third of Americans plan to retire later due to Covid<br \/>Tips on whether to eliminate your mortgage in retirement<br \/>A Roth IRA could help you buy a home. Here&#x27;s what to know<\/p>\n<p>The New York Fed survey is based on about 1,300 households.<\/p>\n<p>The inevitable reopening of the economy will generate some pick-up in inflation, experts say.<\/p>\n<p>Already, the May consumer price index jumped 5% from a year earlier, according to a separate report by the Labor Department, the fastest pace since just before the 2008-09 financial crisis.<\/p>\n<p>&quot;Workers could start to ask for higher wages and speed up their big-ticket purchases, prompting companies to raise prices and creating the very phenomenon of inflation itself,&quot; said Bankrate.com analyst Sarah Foster.\u00a0<\/p>\n<h2>How to protect your savings from rising costs<\/h2>\n<p>Up until a year ago, an old-fashioned\u00a0certificate of deposit was a reliable way to get a decent return.\u00a0<\/p>\n<p>In the wake of Covid, a\u00a0spike in savings, coupled with the\u00a0Federal Reserve&#x27;s\u00a0move to hold its benchmark rate at\u00a0essentially zero,\u00a0has put pressure on deposit rates across the board.<\/p>\n<p>Currently, one-year\u00a0CD rates\u00a0are averaging under 0.5%, which means savers are locking in funds below the rate of inflation and getting nearly nothing in return.<\/p>\n<p>The CDs that offer the highest yields typically have higher minimum deposit requirements and require longer periods to maturity. But even those yields are no better.<\/p>\n<p>&quot;It appears we might be at a bottom,&quot; said Ken Tumin, founder of\u00a0DepositAccounts.com.<\/p>\n<p>For now, online-only banks such as Marcus by Goldman Sachs and Ally Bank\u00a0are a better bet, Tumin advised, even though those banks are steadily lowering their rates, as well.<\/p>\n<p>&quot;It makes sense to keep some money accessible in an online savings account, but you will still lose out in the short term to inflation,&quot; he said.<\/p>\n<p>Stocks and mutual funds will beat inflation over the long haul, although those asset classes require taking on more risk.<\/p>\n<p><em><strong>Subscribe to CNBC on YouTube.<\/strong><\/em><\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/06\/14\/americans-inflation-fears-reach-a-new-high-after-consumer-prices-jump.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fears of inflation in the year ahead hit its highest level on record, according to a report by the Federal Reserve Bank of New York. [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":116421,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Americans&#x27; inflation fears reach a fever pitch as consumer prices rise - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/americans-inflation-fears-reach-a-fever-pitch-as-consumer-prices-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Americans&#x27; inflation fears reach a fever pitch as consumer prices rise - Fin2me\" \/>\n<meta property=\"og:description\" content=\"Fears of inflation in the year ahead hit its highest level on record, according to a report by the Federal Reserve Bank of New York. 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