Rising gas and food prices could cost homes an extra $3,000 this year

JUST weeks after inflation hit a 40-year high, prices continue to trend in the same direction.

Households are paying more for gas, food and housing across the board.

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A March analyst note from Yardeni Research estimated that a recent increase in gas prices could add $2,000 a year to the typical budget.

That’s on top of another $1,000 in additional food costs, it added.

In early March, the Labor Department reported that February consumer inflation hit 7.9%.

The 7.9% rate does not include the gas blasts following the Russian invasion of Ukraine that took place on February 24.

On March 25, the average price for a gallon of gasoline was $4.24, according to AAA.

Housing costs, which make up a large part of inflation rates, have also risen sharply.

Finally, there are the price spikes that shoppers feel at the grocery store.

With inflation lingering for a while, here are some ideas for savvy shoppers.

Save at the supermarket

Alongside housing, groceries are one of the largest items of expenditure.

According to CNBC, Americans spend an average of $431 a month on groceries.

While how much you spend depends on where you shop and the size of your family, there are some general tips that can go a long way.

• Pay with a grocery rewards card
• Sign up for the store’s loyalty program
• clip coupons
• Join a wholesale club like Costco or BJ’s
• Make a shopping list and stick to it
• Avoid pre-packaged or processed items
• Compare prices online if you can
• Buy generic store brands
• Bring your own bag

Save at the pump

While gas prices have been rising steadily for some time, the invasion of Ukraine has pushed them higher.

As previously mentioned, the average gallon of gasoline costs $4.24.

If you drive a smaller car and need 12 gallons to fill up, you’ll pay over $50 for just one tank.

To save on the pump, you can:

• Buy a Costco membership where you can save nearly 30 cents a gallon on gas
• Use apps including GasBuddy or Gas Guru to find the cheapest gas station near you
• Sign up for fuel reward programs to earn cashback

Ways to reduce your housing costs

According to BankRate, Americans spend 29% of their budget on housing, which is the largest cost to families.

Renting or owning can make a big difference.

They could be dealing with mortgage interest, property taxes, or just day-to-day maintenance like upkeep and utilities.

If you have a mortgage

• Try refinancing at a lower interest rate
• Rent out a room
• Resize and drag to a smaller location
• Find a place with lower property and school taxes
• Consider venturing farther from the city

If you are a tenant

• Get a roommate
• Move somewhere cheaper once your lease expires
• Negotiate – Your landlord may be open to you consistently paying on time

A number of states plan to send out stimulus checks and rebates worth up to $850 each as prices rise.

Meanwhile, California residents can receive $800 in payments under a proposal.