Worried about inflation? These tips may help you stay ahead

Economists say the impact of tariffs may soon show up in consumer prices

By Mark Huffman of ConsumerAffairs

August 26, 2025

• Regularly review monthly spending to identify areas to cut back, such as unused subscriptions and discretionary purchases, helping offset rising costs from inflation and tariffs.

• Opt for generic brands, utilize sales and cashback apps, consider bulk buying essentials, and prioritize domestic products over tariff-heavy imports to save money.

• Keep savings in competitive interest accounts, diversify investments, and maintain an emergency fund to better withstand ongoing price increases and economic uncertainty.

Consumers are increasingly worried about the rising cost of living, reflected in the consumer sentiment surveys taken over the summer. A major sentiment tracker from the University of Michigan recorded a three-point drop in its index from July to August.

While the July Consumer Price Index showed inflation remained stable, prices have risen a lot over the last four years and some economists say the effects of tariffs are just now being reflected in price tags.

ConsumerAffairs turned to several personal finance experts for advice on keeping spending in check and here is the consensus:

• Track spending: Review monthly expenses to spot areas where costs can be trimmedsuch as unused subscriptions, dining out, and unnecessary memberships.

• Prioritize needs vs. wants: Focus on essentials and cut back on discretionary purchases, especially as inflation makes nonessentials more expensive.

• Shop smart: Switch to generic brands, shop sales, and use price comparison and cashback apps for groceries and essentials.

• Stock up early: Consider bulk-buying non-perishables and household items before prices rise; joining warehouse clubs can reduce per-unit costs on frequently purchased goods.

• Avoid tariff-heavy products: Minimize spending on categories most affected by tariffs, like imported electronics, toys, and some apparel; seek domestic alternatives if possible.

• Lock in rates: Negotiate longer leases on rentals or refinance loans to benefit from lower interest rates, safeguarding against future increases.

• Pay down high-interest debt: Focus on reducing credit card and variable-rate loan balances, as rate hikes quickly make these debts more costly.

Investment and financial well-being

Beyond smart shopping, financial advisors say it is important to keep you money working. If its in the bank, shop around for a competitive interest rates.

• Earn interest: Keep savings in accounts or certificates that yield dividends or interest to help money keep pace with inflation.

• Diversify investments: Maintain a balanced investment portfolio (stocks, bonds, index funds) and consider inflation-protected options like I Bonds.

• Build an emergency fund: Safeguard finances against unexpected costs by saving three to six months’ worth of living expenses in a dedicated fund.

Experts say that implementing some of these strategies can help consumers cope with inflation and tariffs, keeping more money in their pockets while maintaining financial security.

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