Yahoo Finance Weakening Retail Sales Mean You Should Buy These Items Now — Before Prices Skyrocket
Despite economic stability that has defied post-COVID-19-pandemic expectations, some recent signs are pointing to weakening retail sales, which can be a harbinger of other economic problems, such as recession.
Though retail sales may be wobbling, inflation is not relenting, meaning prices are not only remaining high, but may continue to rise. In fact, according to the Bureau of Labor Statistics, retail sales rose 0.6% month-over-month as of February and 1.5% from a year ago. This bodes poorly for prices coming down and may even signal that prices will have a steep increase again soon.
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“Consumers are starting to pay attention to how they’re spending their money these days. With prices going up and incomes staying the same, it’s putting a lot of individuals in a tough spot financially,” said James Strong, financial enhancement specialist at JamesAStrong.com.
One way consumers can get ahead of any other potential price increases is to stock up on things that may be about to get even more expensive. Experts explain which items you may want to purchase now.
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Chocolate
Everybody’s favorite sweet treat, chocolate, is about to take a hit, according to Julie Ramhold, consumer analyst with DealNews.
“The price of cocoa is due to hit an all-time high this year, so anything chocolate is going to see a price increase,” she warned.
She said, if you have any doubt, take a peek at the cost of Cadbury eggs. “Recently, I noticed how much smaller these items are compared to a couple of decades ago, and they’re about five times the price they were then, too. If you enjoy a regular chocolate indulgence, you may want to stock up while the items are cheaper.”
One recommendation is to fill your cart the day after Easter, when things are on clearance, and after that, it’s best to watch for sales before stocking up again, she said.
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Takeout/Dining Out
Rising ingredient costs mean that you’ll feel this price pinch when you’re dining out, as finished dishes at restaurants are going to increase in price, Ramhold said. Additionally, some groceries are also still notably high, too, so your grocery trips may continue to hurt for a while.
“Convenience foods have seen some of the sharpest price increases overall over the past year, so if you can make the time to cook your own meals from fresh ingredients, you may find it cheaper than purchasing something like a frozen lasagna or ordering pizza for dinner,” Ramhold said.
Big Ticket Items
As potential price hikes loom, consumers should look at their big ticket items that might need replacing, like cars and electronics, according to Trae Bodge, smart shopping expert at TrueTrae. “If these items are on their last legs, so to speak, research brands and models that suit your needs and track those prices, using a tool like Google Shopping or Yahoo Shopping.”
Strong agreed that thinking big is the way to go right now if you can afford it.
“When prices are on the rise, it’s wise to focus on buying large essentials before they become even pricier. Think about appliances like washers, dryers, refrigerators and stoves — they’re often available at discounted prices during slow sales periods, making now a great time to buy,” he said.
The same goes for vehicles, he explained. “If you’re in the market for a new car, consider making the purchase sooner rather than later to save money. Getting ahead of the game by snagging big essentials now means you won’t get stuck paying sky-high prices when you urgently need them.”
Consider How You Save
It’s also a good time to save for these upcoming purchases by opening a high-yield savings account, Bodge suggested.
You can also set up automatic withdrawals into this account, and the high APY will help those savings grow until you are ready to make your purchase, she explained.
Rethink Your Spending
Alternately, Strong suggested it may be time to step back and rethink your spending habits altogether. “Consumers are realizing the importance of making more thoughtful choices with their money to navigate these uncertain economic times more effectively,” he said.
Whether you stock up on these items or cut back on your spending altogether, 2024 may be a year to be even more cautious with your purchases.
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This article originally appeared on GOBankingRates.com: Weakening Retail Sales Mean You Should Buy These Items Now — Before Prices Skyrocket
