U.S. cities where inflation is still rising: Miami, Detroit and more
Inflation rates have been on the rise since 2022, hitting a 40-year high. However, according to a recent report by WalletHub, inflation is gradually slowing down. While some areas of the United States are experiencing a decrease in inflation rates, other cities are still struggling with rising inflation.
WalletHub’s study analyzed inflation rates across 23 major metropolitan statistical areas in the United States. The study used data from the U.S. Bureau of Labor Statistics to track inflation changes in the consumer price index (CPI) for goods and services paid by consumers. One-year and two-month CPI changes were weighed to create a ranked list of all 23 cities.
According to the study, cities in Florida are currently experiencing some of the highest rates of inflation. Miami is ranked as the number one city with the highest inflation rate, with a 9% increase in the CPI over the past year. Tampa, Florida, also appears on the list, ranked fourth.
One of the main drivers of inflation in Miami is the increase in housing prices. The U.S. Bureau of Labor Statistics reports a 15% increase in housing prices in Miami since April 2022. Other costs of living, such as utilities and food, have also contributed to the rise in inflation.
On the other hand, New York City has seen a much lower increase in inflation. The CPI in New York City has only risen by 3.7% over the past year. This is because New York City already has a higher baseline cost of living than other cities.
Here is a list of the top 10 cities with the highest inflation rates, according to WalletHub’s study:
1. Miami-Fort Lauderdale-West Palm Beach, Florida
2. Detroit-Warren-Dearborn, Michigan
3. Phoenix-Mesa-Scottsdale, Arizona
4. Tampa-St. Petersburg-Clearwater, Florida
5. Seattle-Tacoma-Bellevue, Washington
6. Dallas-Fort Worth-Arlington, Texas
7. Denver-Aurora-Lakewood, Colorado
8. Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin
9. San Diego-Carlsbad, California
10. Houston-The Woodlands-Sugar Land, Texas
As inflation rates continue to fluctuate, it is important for consumers to stay informed about changes in prices and costs of living.
FAQs:
What is inflation?
Inflation is the rate at which prices for goods and services increase over time.
How is inflation measured?
Inflation is measured using the consumer price index (CPI), which tracks the change in prices for goods and services paid by consumers over a specific period of time.
What causes inflation?
Inflation can be caused by a variety of factors, including an increase in demand, a decrease in supply, or changes in government policies.
How does inflation affect consumers?
Inflation can lead to higher prices for goods and services, which can reduce consumer purchasing power and lead to a decrease in standard of living.
Miami, Detroit, and Others – U.S. Cities Experiencing Continual Inflation Increase
The year 2022 was marked by a 40-year high in inflation, however, it has gradually started to decline since then. Some areas are still faring better than others though, as per WalletHub’s recent report. WalletHub’s study aimed to determine where inflation is the biggest problem in the United States through data from the U.S. Bureau of Labor Statistics. Cities in Florida top the list of cities where inflation is rising the most. Miami ranks first, while Tampa, Florida, takes the fourth position.
According to data from the Bureau of Labor Statistics, over the 12 months ended in April, the Consumer Price Index increased by 9% in Miami and by 7.7% in Tampa, contrasting with the 4.9% for the United States overall. Miami’s housing prices saw a 15% increase since April 2022, being one of the primary causes of the above-average jump in inflation. Other costs like electricity and other utilities have also risen, says WalletHub communication director Jill Gonzalez.
The cost of food in Miami went up by 7.9% between April 2022 and April 2023, while energy prices rose by 7.1%, further propelling inflation. In New York City, inflation growth was much lower at 3.7% on the CPI, yet being an expensive city to live in, it gives less room for inflation to grow.
WalletHub’s report factors in year-over-year and two-month changes in CPI to rank the 23 major metropolitan statistical areas with available data, to determine where inflation is the biggest problem in the United States. Here are the inflation increases in ten major cities, ranked by a weighted average of year-over-year and two-month changes in CPI:
1. Miami-Fort Lauderdale-West Palm Beach, Florida; 2. Detroit-Warren-Dearborn, Michigan; 3. Phoenix-Mesa-Scottsdale, Arizona; 4. Tampa-St. Petersburg-Clearwater, Florida; 5. Seattle-Tacoma-Bellevue, Washington; 6. Dallas-Fort Worth-Arlington, Texas; 7. Denver-Aurora-Lakewood, Colorado; 8. Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin; 9. San Diego-Carlsbad, California; 10. Houston-The Woodlands-Sugar Land, Texas.
The report analyzed the rise in inflation across the reviewed metropolitan statistical areas, and one-year and two-month CPI changes were weighted to create a ranked list of all 23 cities. CNBC Make It has launched a new newsletter that aims to provide people with tips on being smarter and successful with their work, money, and life.