The pain that high inflation brings can be limited

The bottom line: Food, transportation, housing, clothes, health care — nearly all the essentials of daily Clark County life ­— cost more in the first half of this year than they did a year earlier, according to the Bureau of Labor Statistics.

Consumer prices from Vancouver to Salem, Ore., climbed 3.9 percent at the start of this year, the highest inflation rate the area has seen since 1992. It will cost more to heat your home this winter. And odds are good that your income hasn’t kept pace with the rising cost of living.

While you can’t control prices, you can limit some of the pain that inflation brings.

What’s happening with heating prices?

NATURAL GAS: Northwest Natural plans to raise the cost of gas by more than 20 percent, effective Nov. 1. A separate increase in fees is being reviewed by state regulators.

ELECTRICITY: Clark Public Utilities commissioners expect to vote on a rate hike in January. They hope to keep it under 10 percent, said Mick Shutt, utility spokesman.

OIL AND PROPANE: Oil and propane prices are both down from a few months ago, but early estimates suggest that home heating with either fuel will cost significantly more than last year, according to U.S. Department of Energy figures.
Does anything cost less?

HOUSES: Good news if you’re buying, bad news if you’re selling. The
median Clark County home sold for $240,000 in August, down 8.4 percent from a year earlier.

CLOTHES: “Apparel is actually down 0.8 percent compared to August 2007 in the Western region,” said Tony Nunes, economist with the Bureau of Labor Statistics.

Will next year be this bad?

PROBABLY NOT: Forecasters in Seattle’s finance department expect consumer prices to climb 2.6 percent, which is closer to what we’ve grown used to in the Northwest. Investors and economists believe inflation could be even lower, possibly close to zero, according to the Bloomberg News Service.

BUT WATCH ENERGY: After rate hikes go into effect this winter, natural gas and ­electricity prices may stabilize for a few months. But unless the world economy goes into a major slump or significant new supplies are uncovered, prices are likely to climb more by the end of 2009, Michael S. Haigh, head of U.S. commodities research for Societe Generale, said in a recent conference call.

What should I do now?

TACKLE THE ENERGY BILL: Enroll in Equal Pay programs, which spread high winter power and gas costs across the entire year to keep heat affordable. Call Clark Public Utilities at 360-992-3000, Northwest Natural at 800-422-4012.

STAY CLOSE TO HOME: Gasoline and transportation costs are climbing faster than any other category. To lower these costs, bundle daily errand runs into fewer trips, and try a “staycation” instead of a long-distance vacation from biting your budget, said Marie Dodds, public affairs director for AAA of Oregon and Idaho.

WATCH YOUR WALLET: If you don’t already track your spending, now is the time to start a budget. Credit is getting harder to come by. Stay ahead of the game by living within your means. For assistance, go to www.wife.org/setting-up-a-budget.htm.

Courtney Sherwood covers business and the economy for The Columbian. Reach her at 360-735-4553 or courtney.sherwood@columbian.com.