How the 4.2% inflation increase impacts your wallet and savings | FOX 10 Phoenix

The economy is seeing a fresh surge in inflation as the new Consumer Price Index shows prices rising 4.2% annually in May, marking the highest level seen in three years. Financial expert Matt Shultz joined FOX 10 Talks to break down the numbers and discuss how the ongoing increases affect everyday consumers and businesses alike. While rising gas prices over the last couple months are driving a significant portion of the inflation, a variety of other factors, including supply chain issues and domestic cattle availability affecting grocery items like beef, ground beef, and steak, are contributing to the widespread economic strain. The impact of inflation is being felt harder today than it was six months or a year ago, extending beyond consumers to hit businesses that face higher operational and production costs. While the war in Iran is a major mitigating factor driving up energy costs, history shows that economic shifts also ebb and flow based on diverse disruptions ranging from past outbreaks of the bird flu to global supply chain challenges. In response to the uncertainty, Shultz noted that the Federal Reserve may hike interest rates before too long or keep them similar, which maintains an environment where people can find high rates to help their future financial lives. To navigate the fluctuating economy, consumers are advised to build defensive assumptions into their personal budgets by planning for the worst and hoping for the best. Shultz recommended taking advantage of current high levels in high-yield savings accounts to grow personal savings while focusing on controlling manageable financial choices. For more consumer insights and financial tips, individuals can access Shultz's weekly newsletter or find personal finance resources online through lendingtree.com.