For those of you still employed and secure in your jobs, congratulations! You may be getting a raise next year. A survey by two compensation consulting firms revealed that businesses intend to increase employee pay by an average of 3.5 percent in 2009. But with good news comes bad news these days, of course, and the flip side is that these same employers are still intent on cutting jobs -- 26 percent of them plan layoffs next year.

If you're feeling secure, there's even more good news: Your raise will go farther. That's because economists believe the rate of inflation for 2009 will be just 1.5 percent. Still, you're not completely off the hook. A quarter of surveyed companies plan to raise contributions for health care. Overall, Big Business will be reducing benefits, and many don't intend to give bonuses.

Even if you're not on the receiving end of those raises, take some comfort. With this move, businesses are signaling their long-term confidence in the economy, believing that, hey, maybe the country won't fall into depression and Obama might actually do a good job. They're doing their part to get people shopping again and encourage lenders to reopen their coffers. Of course, that's faint consolation now if you've been axed or nearing the chopping block. But at least The Man is showing some mercy by not cutting back on everything.

When my wife and I lived in Southwest Virginia, we bought most of our food at Wal-Mart. It was close to our house, the produce section was outstanding, and the prices were low. In retrospect, it's pretty clear that we were spoiled; when we moved to the Bronx about a year and a half ago, we were blown away by the increased cost of basic necessities. While clothes, restaurants, and other discretionary expenses were much cheaper in our new neighborhood, milk and peanut butter cost almost twice as much, string cheese tripled in price, and beef was too expensive for us to buy. After comparison shopping at the five or six supermarkets in my neighborhood, I began taking weekly trips to Trader Joe's to pick up necessities. I soon discovered the local Farmers' Market, the canned food sections at nearby dollar stores, and the joys of cheap Dominican food.

Don't miss the rest of our series on Underrated In America!

I also became friendly with the proprietors of my local international groceries. The Indian store, I found, offered fantastic deals on spices, nuts, snacks, and convenience foods. One of my staple foods, almonds, were three-fourths the price of Trader Joe's, and the nuts were fresher and more flavorful. Similarly, the Indian heat-and-eat dishes were not only cheaper than their US counterparts, but were also tastier and healthier. Gits and Ashoka, for example, both offer a wide selection of delicious dishes, none of which contain high fructose corn syrup (HFCS), partially hydrogenated oils, or any of the other dangerous pseudo-ingredients that are popular in American convenience foods.

Next to my Indian store, there's a Cambodian joint that has great deals on frozen fish, fresh produce, soy sauce, rice, sesame oil, and an almost endless array of mysterious Asian ingredients. I also discovered, a few blocks away, a Korean store that sells beef at about 2/3 the prices charged by my nearest grocery, as well as an even bigger selection of fresh produce, rice, and other ingredients. Both stores have an impressive selection of noodles and a wide array of bizarre Asian soft drinks, most of which have been delicious. Pennyroyal soda, by the way, is a major exception, and tamarind juice is touch-and-go. Proceed with caution and be sure to try roasted coconut juice whenever you get the opportunity!

Count on it each election season: Our elected representatives finally get off their duffs and start working on things that will actually affect our pocketbooks.

Early this week, Sen. Herb Kohl, who chairs the Antitrust Subcommittee in the Senate Judiciary Committee, sent a letter to the big four cell phone providers to demand they account for their outlandish recent price increases on text messages. Since 2005, the price of a text message has doubled to an industry standard of 20¢, and perhaps not so coincidentally, it has done so with all four phone providers: T-Mobile, AT&T, Verizon, and Sprint.

Kohl, a Democrat from Wisconsin, demanded that the cell phone companies show him paperwork about their price structures, including evidence of what made them decide to raise rates in such a dramatic way. The rate hikes, Kohl says, were "hardly consistent with the vigorous price competition we hope to see in a competitive marketplace," and he intends to look into them.

Real median household income in the U.S. increased 1.3% between 2006 and 2007, according to the U.S. Census bureau. It's up to $50,233. But, consumer prices climbed 5.6% between July 2007 and July 2008, so most households have to meet bills with less real spending cash.

In case you're wondering why you're no longer able to pay the bills, part of that could be related to the fact that inflation is eating up your raises. You may actually be able to buy less than what you did last year because your salary increases have not kept up with inflation.

If you're wondering where you can earn the most money, move to Plano, Texas. The median household income increased to $84,492, up 10% from 2006 to 2007. Houses are cheap there too. The median home price is $225,000. Plano is the home of several corporations, including Frito Lay, JCPenney, EDS and Perot Systems. The city that came in second place in median household income was San Jose, Calif. at $76,963, where many high tech companies are located. But the problem there is that the median home price is $744,000, so living costs will kill your budget.

A poor job market isn't always just a rain on the parade of American workers; sometimes it comes with a silver lining. This time Federal Reserve Chairman Ben Bernanke is banking on the poor job market being the silver lining that keeps inflation away. In the past raises contributed to inflation as employers raised wages and then prices and then started all over again. This time around the Federal Reserve feels like employees won't push for the raises they want due to the poor economy and job market.

It will be interesting to see if the recent 12% increase in minimum wage plays into the inflation as well as the fact that by nature the majority of people think they are underpaid. While I can easily see the employers getting behind this logic the general public won't be as quick to jump on the boat. Even though the Fed's current plan isn't the most appealing to you and me, their hands are tied because the market won't likely bear the increased interest rates which would normally be used to fight inflation.

It's interesting that the rates need to stay low due to bad decisions made in the lending industry over the past few years and now, we can't take the standard actions to fight inflation because it could hurt these same industries. Bernanke is depending on the average American to forgo a raise this year to essentially boost up the economy while enduring the hardest part of the current economic state. Despite Ben's hope and the fact that it could contribute to inflation I plan to seek a raise later this year due to additional responsibilities and my performance. Even in this tight job market I think the increased costs that consumers are facing at the pump, the grocery store and for shelter will push many of them to ask for a raise too.

Today the federal minimum wage increased 70 cents to $6.55, as the second phase of a series of moves meant to bring the minimum wage up over a three year period. The "raise" will affect roughly 1.7 million workers or 2.3% of hourly workers, which means that collectively the cost of employing all minimum wage workers for one hour jumped $1.19 million today.

Despite the increase, the new rate is still below the inflation-adjusted 1997 level of $7.02, and far below the inflation-adjusted level of $10.06 from 40 years ago, according to a Labor Department inflation calculator. And it obviously still leaves many families well under the poverty line.

You'd think that getting a 12% raise during poor economic times would be a great help for 850,000 people over 25 who are making minimum wage. Unfortunately the increase is often quickly passed to the items these same workers need to buy; including food and gasoline. Smaller Businesses will also feel the pinch as they struggle to cope with higher wages and customers who are sick of seeing prices go up time and time again.

Contrary to what you may have heard in the media, not everything in this country has been hit by rising prices. Yes, inflation is a problem that has burdened a lot of us and has affected the prices of a lot of things that we buy. But believe it or not, some things have seen price decreases (no, not just real estate) and you might be able to find yourself a bargain!

Here's an easy rule of thumb about the products have decreased in price: Retail items that aren't necessities are prime targets for bargain hunters. The retail world has felt the economic impact of the economy and sales are down. Plenty of stores have reduced the prices of "extras" to get consumers buying again.

On the list of products with price decreases: electronics like cameras and flat-panel televisions, desktop computers, women's clothing, toys, and household goods like kitchen items. Also on the list are service businesses like hotels, which are feeling the pinch of slightly decreased business travel. Theme parks are offering plenty of deals too, as the operators realize that taking the whole family just might not be in the budget this summer.

Don't run out and spend all your money just because of some deals like this. But if you already planned on getting some of these items this summer, have fun knowing you're saving a bit extra, thanks to the shaky economy.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Rising gas prices are everywhere in the news as the fall-out continues. One article fears for $5 gas by July 4, others focus on the unlikely winners in the wake of such high prices at the pump, like Segway scooters. Meanwhile, if you are driving in your car still these days, it will get easier to choose which satellite radio service to purchase, since the FCC approved the merger of XM and Sirius.

News nuggets you need to know today:

• Rise in gas ripples through the economy
• Gas prices forcing many to pick up and move
• Floods May Send Gas Up 15 Percent
• $5 Gas Likely by July 4th; Get Ready for 'Stay-Cation'
  
• Price Jolt: Electricity Bills Going Up, Up, Up
• High Gas Prices Boost Interest in Segway Scooters
• Gas Prices, Economy Ease Shortage of Truckers
• Where to Find Deals as Inflation Soars

Elsewhere on the Web:

• CEO Pay Climbs Despite Companies' Struggles
  
• Five Ways to Cut Car Insurance Costs
  
• Slash Your Grocery Bills: 3 Steps for Reining in Costs
  
• Some Employees Buy Own Laptops, Phones for Work
  
• He's Big Bird: Caroll Spinney Loves Every Feather
• The Necktie, Knot What it Used to Be, Still Hangs On
  
• Nike Lets Sponsored Swimming Change Brands
• New Kits Can Turn Your Car into a Hybrid
  
• How Much You Need In Your Wallet For Your Next Flight
  
• Protect Your Child from Online Dangers the 'Cyber Dad' Way
  
  
  
  

Did you know that, according to the U.S. Department of Commerce, consumer spending actually increased by 0.4% in March? That's right: statistics show that the United States' economy, as indicated by consumer spending, is actually growing!

Well, that's a little bit of an exaggeration. Actually, if you were to account for inflation, consumer spending has risen by an anemic 0.1%. The other 0.3% increase was due to rising prices, specifically the increased cost of food and energy.

Basically, people are buying the exact same things that they were buying a month ago, but are now paying more for those items. And, to be honest, there doesn't seem to be a light at the end of this tunnel. Energy costs are probably going to keep on rising, at least for the time being, and food prices will probably keep pace. Basically, as economists keep telling us, we are at the tail-end of a boom cycle and we can look forward to an economy that will now readjust to reflect its actual dimensions.

Inflation was recently ranked as a number-one worry to consumers in a CNN poll. I can definitely understand why, CNN showcased several price increases over the past year, from 13% for milk to 33% for gas! It's clear that the prices for items we use everyday are going up up up.

These changes to the economy should spur you to change your saving strategy if you want to ride ride out the ever inflating prices at the pump and the supermarket. Right now you would almost be better of buying milk than putting money into your savings account, 13% growth is pretty good. Pity milk doesn't keep like gold though.

CNN offers three rules to use for anyone trying to save during a time of inflation.

Everyone's worried about inflation, and the Labor Department just released March numbers to help us assess where we are as a country. There was a very small increase in consumer prices: 0.3%. That figure means that for the last 12 months, inflation is up by 4%.

The increase is calculated for a group of goods that the average consumer is likely to purchase. Part of that group is food, which has gone up 4.4% over the last year. Energy costs were the biggest driver of the increased pricing, going up 17% over the most recent 12 month period. What went down? Clothing costs, with a 1.3% drop in prices, a huge drop for that sector.

Fear not: Even though consumers and the media are all panicked about "the recession," we are not in a recession. The economic data just doesn't support it. Even though prices our up, our economy continues to grow. A recession means that our economy has declined for two consecutive quarters, and we're just not there. (We don't even have one quarter of decline under our belts!)

I say consumers should continue to budget carefully and save for a rainy day as much as they can. Eating at home is one of the best ways to offset the rising food costs, and by staying home you'll also save gas to help deal with the rising energy costs. Consumers do have lots of options to help with saving and responsible budgets. (And WalletPop is one great way to be aware of the great deals available to consumers!)

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Signs explaining how management has no choice but to pass along their increasing costs to the end consumer are becoming as familiar a point-of-sale display as an Am-ex tent card. Everything from a carton of eggs at the supermarket to the paper cup for my coffee comes with a side order of doom these days.

So it was refreshing, to say the least, to receive this in an e-letter from a Little Rock, Arkansas business yesterday:

NO HIGHER PRICES!

Boulevards answer to the unbelievably higher prices for flour, (from $10 a bag to $29 a bag), butter, eggs, and all other commodities is to be more efficient, waste less, to work harder, and to build volume through great service and exceptional quality products, (we are working tirelessly to improve service daily)!

You will NOT see a price increase for the foreseeable future! Please continue to support us, every customer is SO appreciated and loved!!!

-Scott McGehee, Boulevard Bread Co.

I called up Scott, who owns and operates the coffee/gourmet food shop, beloved by local hoity-toities and hipsters alike, to ask him about this radical departure from the herd. He told me that he is determined to find reasonable alternatives to making his customers carry the burden of his increased costs. How novel. Most other businesses seem to turn to the consumer's wallet as a line of first defense, not the last resort.

Last week, Walletpopper Zac Bissonette wrote about the dividends of honest customer service. Is goodwill toward an establishment money in the bank? If so, strategies like Boulevard's might yield better returns in the long run than the usual "we're suffering, so should you" line.

Have you heard of any businesses in your community taking a similar approach?

Kyran Pittman blogs about life at Notes to Self. Her essays have been featured three times in Good Housekeeping magazine's "Good Reads" section.

I've been actively looking for some good economic news, so I could write about something pleasant for a change, and I found something intriguing, in case any of you missed it. It's a four-day old article at the CNNMoney.com web site, but it's news that pertains to the rest of the year. While prices for about everything seem to be going up, at least one commodity is predicted to stay even and possibly drop: milk.

Why? According to the U.S. Department of Agriculture, milk prices shot up 12% last year, but this year, it'll hold or drop because there's been a 1.1% increase in the cow population. What's more, there's been a 1.7% growth in the average output per cow.

Now, I realize that this isn't much help when gas prices are what they are ($111 a barrel according to the most recent news), but it will help families with young children who do need to drink milk, and for impoverished families, that's indisputable good news.

While the news media is in a panic about inflation and the potential for a recession, the actual numbers are a bit more encouraging. The Labor Department released the figures for February, showing consumer inflation at the lowest level in the last six months. Energy and food prices leveled out, and played a big part in this. (Although this month, energy prices sure have been on the rise!)

Experts say that February's numbers won't be repeated again soon, though. Increases in energy prices are expected to continue to be painful. The food numbers were interesting: prices declined for vegetables, fruit, poultry and pork. They were up for cereal and bakery. Overall food prices are expected to increase in the coming months, though, as corn is being used in ethanol and creating a ruckus in every industry that previously depended on corn. (Think corn-based food products and animals that use corn as feed.)

Inflation was bad in 2007, with a 4.1% increase, the largest in the last 17 years. 2008 isn't expected to look any better overall, so I think consumers will just be forced to change their lifestyles to accommodate the price increases. I don't think that government intervention is the answer. In fact, government meddling in the form of regulations, mandates, and taxes has a track record of screwing things up even worse. Your best bet is to control your spending now and save some money for a rainy day to help you weather the even higher prices that are coming soon.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Is it any wonder that the economies of the Asian manufacturing behemoths are beginning to wilt? Should we be surprised by the downwardly revised economic outlook for Japan? Does China's burgeoning inflation rate give us pause to ponder the reasons why? Ha! They're getting what they got coming to them. They asked for it and they have done it to themselves.

Since the 1940's the Asian manufacturing block has built its economies upon the backs of hard working Americans, aided mostly by American corporations seeking out their sustenance hungry work forces which were willing to work for just pennies a day. Now, it's coming back to bite them in the rumps. Cry me a river, won't ya?