5 Ways the Middle Class Can Combat Inflated Prices This Labor Day

Inflation has slowly been ticking down. According to the latest Consumer Price Index data, inflation stood at 3% in June, down from 3.3% in May. And yet, higher prices continue to take a toll on wallets.

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Indeed, consumers have been hurt by higher prices in their everyday life — whether at the grocery store or due to higher mortgages and rents. And for many middle-class Americans, navigating everyday finances has become challenging.

Labor Day is just around the corner, on September 2nd, marking the end of summer and the beginning of the back-to-school season. It’s also yet another reason to shop and spend money, thanks to many stores holding Labor Day sales.

“While inflation has cooled, many Americans still haven’t felt the effects of this change,” said Scott Lieberman, the founder of Touchdown Money . “Prices are still high, so even though inflation is stable, it’s still difficult to make purchases.”

The recent GOBankingRates’ Summer of Savings survey found that 27% of Americans plan to spend up to $50 on their Labor Day plans. Another 14% plan to spend between $100 and $199, 4% plan to spend between $300 and $399 and 4.4% intend to spend more than $500.

If you’re worried about inflation eating away at your holiday budget, you’re not alone. GOBankingRates reached out to the experts for ways to combat inflated prices and tips to help you save if you’re looking to buy things on Labor Day.

Plan Your Shopping and Think Ahead

Consumer finance expert and vice president of brand at Achieve , Tanya Peterson said that Labor Day sales can offer some great deals and can therefore be very tempting.

Yet, she also warned that it’s easy to get carried away and buy more than you really need if you just head out shopping — whether to brick-and-mortar stores or online.

“Instead, think through and list what you’re shopping for,” suggested Peterson. “Take some time to distinguish between wants and needs.”

Another tip from her: think ahead, as the holidays are just a few months away.

“This is an excellent time to think through your gift-giving and celebration plans,” said Peterson. “List those to whom you plan to give a gift, with ideas on the gifts and a price limit.”

And if you spot something that meets your criteria during Labor Day sales, and fits into your budget, you may be able to save money , time and stress during the holiday season.

“If you know of other events for which you’ll need gifts this fall — birthdays, weddings, other celebrations — you may come across good finds,” she added.

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Compare Prices

Brett Narlinger, senior vice president of global commerce at Blackhawk Network , stressed the importance of shopping across different channels: in-store, online and in-app.

“Marketers are well-aware that the economy is driving people to look for the best deals on everyday products and services, and most retailers are running promotions regularly — particularly around Labor Day and back-to-school,” said Narlinger.

Yet, what many shoppers may not realize is that different shopping channels often feature different deals — even with the same retailers.

“Taking the time to compare prices across channels, and even between retailers, will help your budget and make sure you’re rewarded for what you buy,” added Narlinger.

Consult Your Budget

According to Peterson, every household, large or small, should maintain a simple budget to know exactly what’s coming in and going out, and how well you are doing in moving toward goals you’ve set.

“Whether that’s to buy the new appliance or mattress, or be able to retire one day,” she said.  “No matter how great the sale is, it’s not worth going into credit card debt over.

“The great deal on the refrigerator or bicycle won’t be a great deal at all if you end up paying more than the purchase price in interest. And with credit card interest rates now approaching 25%, that can happen quickly.”

Look for Summer Items and Mattresses

Lieberman recommended sticking to summer items. Because Labor Days signals the end of the season, it also means those seasonal items need to move.

“Buying them now and enjoying them in September and October means you’ll save plenty and set yourself up for next summer,” he said.

The GOBankingRates survey showed that many consumers are planning to do exactly that. 16% of respondents intend to buy clothing during Labor Day — such as shorts, swimwear and flip flops. Meanwhile, 13% plan to buy summertime essentials — such as sunscreen, beach towels and pool accessories– and 18% plan to buy outdoor essentials.

Lieberman also suggested checking out sales on mattresses.

“Mattress companies see their financial year end in the fall, so sales tend to come in bunches for Labor Day,” he said.

While only 4% of Americans say they plan to buy a mattress this Labor Day, according to the survey, these purchases can be very pricey, so taking advantage of any sale is always recommended.

Consumer Affairs reported that budget mattress options can range anywhere from $50 to $500, while high end options tend to start at $1,800, costing as much as $4,000 (if not more).

Buy in Bulk

Labor Day is also a good time to buy everyday and grocery items on sale in bulk. And according to the survey, food is the number one item individuals plan to spend money on.

In fact, the survey found that more than half of the individuals who plan to spend money on Labor Day, plan to spend on food — 53.75%.

“This is something you can prepare for too, as many stores will be promoting their Labor Day offers in advance,” said Erika Kullberg, an attorney, personal finance expert and the founder of Erika.com .

“Depending on what you’re buying, you’re likely to find some significant markdowns during this period, so keep your eyes open for a deal.”

Because a lot of people can actually end up overspending when it comes to bulk shopping, Kullberg recommended being cautious about sticking to your budget.

“Stick to items you know for sure that you’re going to get full use of. If it’s something you and your household genuinely uses regularly, then you’ll often [find] better per-unit prices at the likes of Costco, which can help you maximize your available budget,” she added.

This article originally appeared on GOBankingRates.com : 5 Ways the Middle Class Can Combat Inflated Prices This Labor Day