The Federal Planning Bureau (FPB) bases its inflation predictions for January – December 2024 on inflation expectations from December 2023 (provided by Statbel). Effective January 3, 2024, these forecasts are future-oriented and geared towards providing an up-to-date inflation forecast.
Analysis indicates Brent crude oil should average around $77 PB in 2024, and the EUR/USD exchange rate is pegged at 1.10. Based upon these forecasts, CPI (consumer price inflation) should hover around 3.2% this year, as opposed to 4.06% last year. Back in 2022, raging inflation topped out at 9.59%. Despite a modest drop in inflation forecasts, the cumulative impact of inflation on personal disposable income is crushing.
Essential takeaways from data mined in the December 2023 forecasts indicate the following:
- The average CPI in 2024 is expected to be 3.2% (down from 4.06% in 2023).
- The Health Price Index (measuring house rents, social benefits, and wages) is expected to be 3.3% (down from 4.33% in 2023).
- Given surging inflation, Social Benefits are expected to increase by 2% in April 2024.
The United States Department of Agriculture (USDA) reported summary findings in its 2023/2024 Food Price Outlook (FPO). Between October and November 2023, the CPI declined 0.2% but remained 3.1% higher than the corresponding period in November 2022. Food prices were 2.9% greater than the same period in 2022.
Other vital takeaways include food-at-home CPI, which dropped 0.5% between October and November 2023 but remained 1.7% greater than November 2022. Food away from home CPI rose 0.4% in November 2023 and was 5.3% greater than the corresponding period in 2022.
* https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings/
How can tech innovation drive down costs?
Given the difficulties of inflationary pressures and the increased costs brought to bear, consumers and businesses are looking to drive down costs. For businesses, the most significant cost factors include labor and supplies. For example, food inflation is a serious concern from a restaurant perspective. The May 2022 CPI indicated a 7.4% Y-O-Y (year-on-year) increase, while the food-at-home CPI was 11.9% greater. This marked the most significant annual increase in 40 years.
For Consumers
Consumers are spoilt for choice when it comes to savings across the board. It takes a little digging to unearth the winners from the losers, but specific money-saving tools have proven their worth. For example, a high-quality gas saving app with extra benefits such as grocery savings doubles as the perfect accoutrement for budget-conscious consumers. These real cash-back applications for users should not focus on credits or complicated points and rewards – they should focus on real cashback.
Extensive research and analysis confirm that the list of such services provides savings of up to $0.25 per gallon cash back on gasoline and 22% cash back at restaurants. For grocery store savings, customers should aim for figures around 30%. These benefits are effective earnings, with competitive offers at various locations. For example, the top-tier apps provide the option for earning cashback at the following locations:
- For consumers on the go, a wide range of gas stations is available, including well-known names like Phillips 66, Shell, Valero, Circle K, Marathon, Chevron, Exxon, Mobil, TA, and 7-Eleven, along with popular options such as Love’s, BP, Casey’s, and Sunoco.
When it comes to dining, the choices are just as diverse, featuring fast-food favorites and casual eateries like:
- Chipotle, Papa John’s, Dairy Queen, Domino’s, Marco’s Pizza, Arby’s, Checkers, KFC, Popeyes, Rally’s, Taco Bell, Primanti Bros, and Wendy’s.
For grocery stores:
- Grocery shopping is convenient with a variety of stores, including Cardenas, Carlie C’s, Coborn’s, Gelson’s, Piggly Wiggly, Price Chopper, Save A Lot, Schnucks, Fresh Foods IGA, Geissler’s, and Acme.
And hardware supplies:
- Aubuchon stands ready to serve, rounding out a comprehensive list of establishments catering to various needs and preferences.
For Restaurateurs
Restaurateurs have several options available, and they come in the form of technological innovations. From the business perspective, data-driven technology is suited to driving down costs without pushing costs onto consumers through higher prices. This avoids overcharging customers, provides real-time market insights into higher-cost items, and ultimately reduces costs overall.
Other techniques available to restaurateurs include implementing competitive advantages with trade downs. This comes in the form of lower-cost meal options. These menu items are budget-friendly for consumers while remaining profit-friendly to companies. Optimizing trade-downs is highly effective for maintaining margins without sacrificing customers through higher prices. This comes from limited-time authors, with reasonably priced menu items and exclusive discounts.
Automation tools, budgeting software, and inventory management are equally effective at beating inflation and remaining competitive.
In a world where inflation challenges budgets, technology is a beacon of hope, offering smart solutions to stretch every dollar. By embracing these innovative tools, we empower ourselves to navigate financial hurdles with ease and efficiency. The future of money-saving is here, and it’s digital, dynamic, and within everyone’s reach.
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