Wal-mart’s CEO told USA Today last week, that inflation is going to be serious and that they’re “seeing cost increases starting to come through at a pretty rapid rate.”
A retail strategist quoted in the same article calls the upcoming inflation “unprecedented in recent history” and says that we can expect to see prices start to increase at all retailers beginning in June.
Inflation Talk is Hitting the Blogosphere Too
There was an interesting discussion about Investing Strategies for Inflation at Barb Freidberg’s blog last week. The guest author suggested commodities investing and currency exchanges as a way to hedge against inflation.
Both Barb and the guest author, as well as many who commented on the post, warned against the risk involved with currency exchanges in particular. So while the suggestions were interesting, I don’t know how practical or even advisable they are for a Family CEO like you or me.
Stockpiling: An Inflation Fighting Tool That Anyone Can Use
I made a suggestion in the comments of that post, and I’ll repeat it here, that one thing anyone can do if they feel inflation is on the way, is to stock up on the things that they use regularly. Here are some ideas:
- Clothing (A lot of “experts” believe that an increase in cotton prices is going to drive clothing costs up. This category might be especially important if you have growing kids.)
- Non-perishable foods
- Household products
- Pet products
- Health and beauty products
Essentially anything you buy regularly and can create a little stockpile of is a good candidate.
If you use some smart shopping techniques in your stockpiling (using a price book, shopping sales, cutting coupons) so much the better. In addition to lowering the cost of your stockpile, you’ll develop a set of skills that will continue to benefit you when inflation hits and you’re forced to buy things at a higher price.
Do you have suggestions for other things that would be good to stock up on? Do you feel inflation is a real threat? What are you doing to combat it?