It feels like every time I hit the store, I’m paying more than I did the day before. My grocery bills are creeping upwards, utilities are too, and don’t even get me started on my car insurance renewal — ouch!
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The latest inflation report for May 2025 shows the Consumer Price Index rose 2.4% over last year. That’s a slight bump from April’s 2.3%. Core inflation (which excludes food and energy) is holding steady at 2.8%.
Those numbers might not sound scary on paper, but they’re starting to show up in everyday life. And experts are warning that prices could climb even more this year, especially with new tariffs kicking in.
So here’s what I’m doing to get ready — and how you can prepare, too.
The first and easiest move to prepare for higher future prices is to start padding your short-term savings account.
It’s not just about peace of mind with more cash on hand. It’s also about protecting your money from losing value.
A standard checking account may earn you just 0.01% interest (mine does). It means all the money I keep in there loses value month after month, because inflation is higher than my interest rate.
But many high-yield savings accounts (HYSAs) pay 4.00% APY or more. My HYSA actually pays 4.50% right now. So I keep as much cash as I can in that account, because it’s not only keeping up with inflation — it’s growing faster currently.
You don’t need to be a big saver. Even parking $1,000 in a better savings account could earn you $40 or more in interest each year. May not seem like much, but when your car insurance renewal pops up and it’s $100 higher than last year, you’ll have a few more bucks to cover it.
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If you’ve been waiting to replace your fridge or finally upgrade your phone, you might want to move sooner rather than later.
New tariffs, especially on electronics and appliances, could drive up prices later this year. And supply chains are still shaky, meaning fewer deals and more delays.
Of course, don’t go buying stuff just for the sake of it. But if there’s something you were planning to get this year, now might be your best window.
Pro tip: If you don’t have the cash for a large purchase, using a 0% intro APR credit card can be a smart move. It lets you buy now and pay over time with no interest. The best 0% intro APR cards offer 12 to 21 months of no interest.
The most powerful way to prep for rising prices is to know your budget inside and out.
Knowing exactly where your money is going makes it way easier to dial back spending if costs jump unexpectedly.
Some simple tactics:
And if you do score a raise or bonus this year? Funnel part of it into savings or a short-term CD that pays a competitive rate. These can help your cash grow while staying semi-accessible.
Inflation may rise slowly or suddenly, but prepping now means you won’t have to scramble later.
You don’t need to overhaul your entire budget. But a few proactive moves today can go a long way in keeping your wallet protected tomorrow.
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