Some Prices May Go Up This Year, But Not Your Pepsi

What happened

After considerable price hikes last year, PepsiCo has said it won't raise its prices any more in 2023. This week, the consumer giant told Reuters it's in a "sweet spot" price wise. "We have most of our price increases for the year already in place," said PepsiCo Chief Financial Officer Hugh Johnston.

So what

In addition to Pepsi-Cola, the company makes Lay's, Doritos, Quaker oats, Gatorade, and a host of other popular snacks and drinks. Even if you're not a big snacker, the news that a big name brand isn't planning more price increases is reassuring. It adds weight to the words of economists who say the worst is over, inflation-wise.

Inflation has cooled so far this year, but prices are still high -- especially for groceries and housing. Unfortunately, slowing inflation isn't the same as no inflation, or, for that matter, disinflation which would mean prices actually went down again. Throw in the ongoing warnings of a potential recession, and consumers have a lot of reasons to watch their budgets. 

Now what

Higher living costs have impacted many Americans' bank account balances this year. Some have had to dip into their savings and others have taken on debt to cover the essentials. While this is understandable, it isn't sustainable. Not only might you need the money in your savings account for other things, such as to cover a financial emergency, rising interest rates make it more expensive to carry debt.

The best way to fight inflation is to reduce your costs. If you can increase your income, so much the better, but that's not an easy option for many people. Start by making a budget and working out exactly where your money goes. Then you can look at areas where you might shave a few costs.

Here are a few ideas to consider:

• Cancel subscription services: Subscription costs can add up, especially as you may not even be using all the services you're paying for. Cut as many as you can -- you can always re-subscribe if you find you miss them.
• Switch to lower cost providers: Shop around to see if you can get a better deal on your phone or internet bill, or see whether you might be able to lower other fixed costs such as insurance. 
• Reduce your utility costs: From taking shorter showers to lowering the thermostat a little in winter, there are a number of ways you can save money on utilities. The savings from energy efficient light bulbs and switching off unused appliances can all add up. 
• Cut your grocery spending: Whether it's reducing the amount of food you throw away, using cash back apps, switching to generic brands, or couponing like crazy, there are a lot of ways to reduce the amount you spend at the till. 

Cutting back isn't always fun. At the same time, there's a peace of mind and sense of security that comes from living within your means. Plus, you might be surprised. Implementing smaller money-saving changes might not have such a dramatic impact on your day-to-day life.