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Ministries Unlimited Thought For The Week (#5)

April 9, 2025

Even with inflation rates down to 2.9% by the end of last year, they are still above the target average of 2% or less.  Post COVID saw inflation rates as high as 8%.  As inflation dropped, so did some of the consumer market products.  Although not to levels that were previously seen.  Is inflation the only factor in the consumer market?  It is a contributing factor, but not the only one.  Here are some of the contributing factors to current high prices: Supply chain transportation costs, global trade issues (i.e. tariffs, import restrictions), natural disasters, labor costs (increased minimum wage), labor shortages, increased energy costs, raw material price increases, shrinkflation (same price for smaller product), tax increases, consumer demand and spending habits.  Effective January 1, 2025, the minimum wage rate in Illinois is $15/hour.  Due to labor shortages, more companies are offering starting wages at $16 or $17 per hour.  This minimum wage increase started well before 2025.  Around 2022, most fast-food restaurants were offering the higher minimum wage in order to attract workers.  Within a year, we saw how this started to affect the cost of services.  The dollar menu at McDonalds went from $1 to $2 within the last few years.  Local & state taxes also affect prices.  For restaurants you may also see a hospitality tax.  

How do consumers fight this never-ending battle?  By changing how we shop, spend, and save.  Shop smarter by buying some items in bulk, but keep in mind the size of your household and how frequently you use the product.  Store brand items are cheaper than name brand items and are usually packaged by a name brand manufacturer.  Shop sales, use digital coupons, and avoid food waste.  Utilize food pantries or FARMs distributions to supplement your pantry.  Reduce your energy consumption by unplugging devices when not in use.  Did you know that your phone charger is using energy even when it isn't plugged into your phone?  Use a programmable thermostat to adjust the heating or cooling when you are not at home.  Buy energy efficient bulbs and appliances.  Check out Habitat For Humanity Restore in Collinsville for low-cost new bulbs and dinged/dented new appliances donated by Lowe's or Home Depot.  If you still struggle with energy bills sign up for LIHEAP at the Jarvis Township office.   Maintain your vehicle to improve fuel efficiency, carpool to work, or use public transportation.  Call MCT or Ride Finders to see how they can help your commute.  Plan your errands to make fewer trips.  Eat out less and cook at home.  Take your lunch to work instead of buying.  Not only are these less expensive meals, but they are healthier too!  Need entertainment ideas?  Look for free activities at your local park, library, or community centers.  Cancel subscriptions or memberships that are not used.  Patronize yard sales, thrift stores, or marketplace.  DIY when possible.  If you can't, then get competitive bids for services.  Track your spending by using a budgeting app or spreadsheet.  Build an emergency fund of at least 3-6 months of expenses.  Reduce your debt by paying off the high-interest debt first.  Saving seems like a daunting task when struggling to make ends meet, but even saving $10 a week will add up over time.  In a year that's $520 in the bank!