https://www.cnbc.com/2021/06/14/americans-inflation-fears-reach-a-new-high-after-consumer-prices-jump.html Skip Navigation logo logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Environment * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Invest In You * Personal Finance * Fintech * Financial Advisors * Trading Nation * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * Venture Capital * Tech Guide Politics * White House * Policy * Defense * Congress * Finding Solutions CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist PRO * Pro News * Pro Live * Subscribe * Sign In Menu * Make It * USA * INTL * watchlive Search quotes, news & videos SIGN IN logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Environment * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Invest In You * Personal Finance * Fintech * Financial Advisors * Trading Nation * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * Venture Capital * Tech Guide Politics * White House * Policy * Defense * Congress * Finding Solutions CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist PRO * Pro News * Pro Live * Subscribe * Sign In Menu Personal Finance Americans' inflation fears reach a fever pitch as consumer prices rise Published Mon, Jun 14 202112:56 PM EDT Jessica Dickler@jdickler ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Key Points * Fears of inflation in the year ahead hit its highest level on record, according to a report by the Federal Reserve Bank of New York. * When inflation rises, savers may consider alternatives for stashing cash. VIDEO2:5902:59 Trading Nation: How to play the inflation game -- Two experts on safe places for your money Trading Nation As the economy quickly picks up steam in the wake of the Covid pandemic, Americans expect inflation to jump in the months ahead. Overall, the expectation is that the inflation rate will be up to 4% one year from now -- a new high for one-year-ahead inflation expectations -- and at 3.6% three years from now, the highest level since August 2013, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations for May. Expectations for how much more consumers will spend on homes, food, rent, gas and the cost of a college education all rose in the most recent report. At the same time, consumers surveyed by the New York Fed also expected household income and spending to increase, particularly among households with annual income of more than $100,000, the central bank said. More from Personal Finance: One-third of Americans plan to retire later due to Covid Tips on whether to eliminate your mortgage in retirement A Roth IRA could help you buy a home. Here's what to know The New York Fed survey is based on about 1,300 households. The inevitable reopening of the economy will generate some pick-up in inflation, experts say. Already, the May consumer price index jumped 5% from a year earlier, according to a separate report by the Labor Department, the fastest pace since just before the 2008-09 financial crisis. "Workers could start to ask for higher wages and speed up their big-ticket purchases, prompting companies to raise prices and creating the very phenomenon of inflation itself," said Bankrate.com analyst Sarah Foster. How to protect your savings from rising costs Up until a year ago, an old-fashioned certificate of deposit was a reliable way to get a decent return. In the wake of Covid, a spike in savings, coupled with the Federal Reserve's move to hold its benchmark rate at essentially zero, has put pressure on deposit rates across the board. Currently, one-year CD rates are averaging under 0.5%, which means savers are locking in funds below the rate of inflation and getting nearly nothing in return. The CDs that offer the highest yields typically have higher minimum deposit requirements and require longer periods to maturity. But even those yields are no better. VIDEO1:2801:28 Here's how to calculate how much you should be saving each month One-Minute Money Hacks "It appears we might be at a bottom," said Ken Tumin, founder of DepositAccounts.com. For now, online-only banks such as Marcus by Goldman Sachs and Ally Bank are a better bet, Tumin advised, even though those banks are steadily lowering their rates, as well. "It makes sense to keep some money accessible in an online savings account, but you will still lose out in the short term to inflation," he said. Stocks and mutual funds will beat inflation over the long haul, although those asset classes require taking on more risk. Subscribe to CNBC on YouTube. logo * Subscribe to CNBC PRO * Licensing & Reprints * CNBC Councils * Supply Chain Values * CNBC on Peacock * Advertise With Us * Join the CNBC Panel * Digital Products * News Releases * Closed Captioning * Corrections * About CNBC * Internships * Site Map * Podcasts * Ad Choices * Careers * Help * Contact * * * * * * * News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. Privacy Policy|Do Not Sell My Personal Information|CA Notice|Terms of Service (c) 2021 CNBC LLC. All Rights Reserved. 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