CHARLOTTE, N.C. — From the gas pump to the grocery store, 2022 has been a whirlwind for consumers. Prices rose at the fastest pace in decades. So what will 2023 look like?
The new year is not expected to get much better.
“What we expect to see is a recession starting in 2023," Mark Henry, CEO of Alloy Wealth, said. “Is it going to be as deep as the Great Recession we saw in '08? In my opinion, probably not and that’s because we have such a strong job market, but we are seeing layoffs already starting, so people need to be prepared for that."
Inflation rose 0.1% in November and 7.1% compared to this time last year. This marks the second month in a row that inflation has eased more sharply than many economists expected.
But experts say beware, especially residents in Charlotte.
“Recessions are not good for tech, not good for the finance industry, all we have to remember is 2009 and how hard we got hit in Charlotte,” John Connaughton, professor of financial economics at UNC Charlotte, said.
It turns out, Americans say their finances will likely get worse next year, citing high inflation as the primary reason, according to a survey from Bankrate.
Henry said there are ways you can navigate higher costs as the new year approaches.
"What you want to do is try and prepare for this, this is where if you have a family, you sit down and discuss that changes may need to happen, look at reoccurring bills in your budget," Henry said.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
But there is some good news -- inflation will continue to drop, but it will take time.
“I think by this time next year we’ll probably be looking at a 3- to 4% rate of inflation," Connaughton said.
As the economy will likely continue to struggle, experts say it's time to become that valuable employee as more businesses will likely start layoffs.
Contact Lexi Wilson at lwilson@wcnc.com and follow her on Facebook, Twitter, and Instagram.