If inflation has eaten away at your budget the way waves erode a beach, then your tax refund might just provide a much-needed protective barrier.
As of March, prices are up 6% over the past 12 months, according to the most recent consumer price index. At the same time, just over half of filers (55%) are expecting tax refunds for the 2022 tax year, with an average expected refund of $2,205, according to the 2023 Nerdwallet Tax Report. Financial experts say consumers can use that windfall � which is really just a delayed paycheck that you already earned � to help offset the strain of those higher prices.
Interactive: Change in Personal Consumption Expenditures price index
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Interactive: Change in retail sales
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Kimberly Palmer is a personal finance expert at NerdWallet and the author of "Smart Mom, Rich Mom." Email: [email protected]. Twitter: @KimberlyPalmer.
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