Prices are rising all over the world. With many economists predicting a recession in 2023, it’s time to take stock. Are you planning on a winter vacation? Do you want to buy that suit or dress for the office holiday party? Are you thinking of trading up your old jalopy? Is it a good time to accept that dinner invitation to a restaurant that will cost you $100 for one meal?
Inflation in the U.S. was 8.2% in September, hovering at a 40-decade high. In the U.K, the rise in the cost of living was 10.1% year-over-year in September. Eurozone inflation soared by 10.7% in October over a year ago, the highest in the zone’s 23-year history. In Singapore, it was 7.5%. In China, inflation was 2.8% in September. Global prices started rising during the COVID-19 pandemic, taking many economists by surprise as lockdowns disrupted supply chains. They increased further after Russia invaded Ukraine earlier this year, and sanctions that adversely hit the supply of agricultural products and energy.
“Be realistic about your financial goals — and be prepared to make hard decisions to achieve them.”
A strong dollar is worth more when exchanged for other currencies, which makes it cheaper for Americans to buy imported goods — and more expensive for foreign companies to sell goods to the U.S. Some analysts also say the strong dollar has, in some cases, exacerbated existing headwinds facing U.S. stocks this year. Prices are eating into people’s budgets. The share of workers who say they are living paycheck-to-paycheck in 2022 has surged among middle- to high-income earners — 63% and 49%, respectively — up from 57% and 38% a year ago, according to a recent survey of almost 4,000 workers by online loan specialist LendingTree. What now? Be realistic about your goals — and be prepared to make hard decisions to achieve them, said William Thompson, a financial planner at Valor Wealth Partners based in Boston, Mass. “That’s not saying that we have to totally abandon our goals. It just may take a bit more work or a bit more intentionality,” he said. Here are five que …