Food prices and rent continue to rise for Honolulu residents

HONOLULU (KHON2) — Food and housing costs are the top expenses that continue increasing for Honolulu residents, eating at restaurants increased by more than 7% over the last 12 months, while rents have increased by 11%.

The rising costs may be causing stress for many, but Ethan Ho the founder of Kala Capital Partners said do not be afraid to tackle those expenses head on.

“Look at where you’re spending the most money in relationship to your income and figure out the biggest area that you can cut first,” said Ho. “You want to spend the time and energy in the place that’s going to be the biggest most meaningful difference.”

Ho said to start by creating a spending plan, prioritizing items that must be paid for such as housing, food, insurance and other important payments like student loans.

And then consider what other areas of spending matter.

“I don’t think it’s important to say hey you can’t go to Starbucks and buy that coffee, right if that’s important to you, do it,” said Ho. “But something’s got to give somewhere so just make purposeful and thoughtful decisions when it comes to your spending plan.”

The State Economist Dr. Eugene Tian said there are wider impacts from the rising inflation. He said Hawaii’s economy could be stunted.

Dr. Tian said, “Overall the spending in real dollars will decrease and it will also impact the visitor. So if our price is higher, and the visitors may not be willing to come.”

Hawaii’s consumer price index is more than 1% higher than the national average. Dr. Tian said the limited housing inventory adds to the squeeze. He predicts inflation will continue to rise.

Dr. Tian said, “This inflation may last for another few months before it is leveling.”

But those are just predictions.

Ho said, “Focus on what’s your control.”

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Such as how money is spent and invested.