With two dynamics hitting the United States at the same time — a reopening economy due to eased COVID-19 restrictions and the threat of even higher inflation — it might be a good time to revisit your financial budget.
See: What Should Americans Expect With Inflation in the Coming Months and Years?
Find: What We Learned About the US Economy in May
Many Americans are ready to start spending again now that more stores, restaurants and entertainment venues are emerging from lockdown. But they’ll find that certain items have seen the largest price increases in more than a decade, according to recent Labor Department data.
As CNBC noted this week, prices on everything from food and gas to lumber have risen sharply this year, making it difficult to return to a pre-pandemic budget. That’s true not only in terms of budgeting for everyday items like groceries, but also for travel and entertainment as well as home-improvement projects.
Christopher Owens, a Certified Financial Planner and senior advisor associate at Maryland-based Wealthspire Advisors, told CNBC that the key is to keep a close watch on spending categories that are likely to keep rising in the coming months.
See: Why You Shouldn’t Worry About All Those Price Hikes in the News
Find: How to Save Money on All Your Monthly Expenses and Bills
“It’s likely to be more volatile in general,” Owens said. “It would be really good to keep your eye on your spending, probably every quarter, just as…
