Last week I wrote a post entitled, “Food Inflation Is Insane” and today the BLS released the April consumer price inflation report and it shows inflation is running close to 4 percent!
CNBC has a great chart about where inflation hit hardest and food is definitely one of those items:
The chart shows the pain points: gasoline (highest), airfares (high), and food rounds out the rest. All items came in at a terrifying 3.8 percent. Sadly, this may only be the beginning as the situation in the Middle East will only keep fuel prices and everything dependent on it extremely high.
Inflation is the most significant problem for people on fixed income which generally means retirees (soon to be me). What persistent high inflation means is that everything will cost more in the future. When I say everything, I mean everything from insurance, food, utilities, and even taxes!
I’ve determined that the best way to beat inflation is to relocate to a lower cost of living country so that’s part of our retirement strategy, at least part time, if not full time.
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What’s your plan for dealing with high inflation?