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Inflation rate reaches high point in more than 40 years

In a normal year, inflation is around 2%. In 2022, the rate is upwards of 8% or more.

MICHIGAN, USA — Inflation is one of the hottest topics around the country right now. Prices are rising faster than they have in decades.

So what exactly is inflation? Grand Valley State University (GVSU) supply chain expert Brian Long puts it plainly.

"Inflation means prices are going up," says Long.

And it's almost impossible to go to the store and find products that cost the same as they did a year ago. Inflation isn't unusual, it happens every year with one goal in mind.

"Two-percent inflation is considered to be positive because it encourages people to spend," says Long.

But while that 2% is standard and more manageable, in 2022, the rate is upwards of 8% or more.

"It's a rate that's larger than the usual 2% that we have been used to for, basically, this last 40 years or so," says Long.

So how can you keep more money in your pocket? Experts name a few different methods.

Consumer finance expert Andrea Woroch tells finance website NextAdvisor subscriptions like Netflix or Hulu are worth cutting back on. A prepaid cell phone plan may also be an option, with some costing as little as $15 a month.

Woroch also mentions selling things you don't use on places like Facebook Marketplace or Craigslist, or using apps to rent your belongings to others. Airbnb for your home or the app Swimply for your swimming pool are both options.

For Long, the best place to maximize your cash is at the grocery store.

"You have to look at those opportunities, I guess, to reduce costs in your food dollar," says Long.

He names eating out as one of the least cost effective ways to live, and recommends cooking at home as much as you can.

"You can economize by taking a look at what the grocers have and preparing some of the stuff yourself rather than relying on prepared food," says Long.

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