Headline inflation sits at about 3% as of September — still above the Federal Reserve’s 2% target but down sharply from the post-pandemic peak of 9.1%. However, inflation’s impact varies widely across U.S. regions, states, and cities, according to a new WalletHub analysis.
The study compared changes in the Consumer Price Index (CPI) across 23 major metropolitan statistical areas (MSAs) to provide a snapshot of short- and long-term inflation trends.
Residents of the Denver area are experiencing the most severe inflation pressures. The city’s CPI rose 1% over the past two months and 3.1% year-over-year, putting it at the top of WalletHub’s list of metro areas with the biggest inflation challenges.
Los Angeles ranked second, with CPI rising 0.7% in the short term and 3.5% over the past year. Chicago followed in third place, with a 0.9% short-term increase and a 2.9% annual rise. Boston came in fourth (up 0.7% short-term and 3.3% long-term), and Minneapolis rounded out the top five (up 0.8% and 2.6%, respectively).
At the other end of the spectrum, some metro areas have seen short-term CPI declines, signaling relatively milder inflation. In Houston, CPI fell 0.1% from two months ago, while remaining up 1.1% over the past year — the lowest overall on WalletHub’s list. Tampa also recorded a 0.1% short-term decrease, despite a 3.3% year-over-year gain, while Miami saw CPI dip 0.2% in the short term and rise 2.5% annually.
Detroit and Atlanta also experienced relatively modest price increases. Detroit’s short-term CPI rose just 0.2%, while its annual inflation rate grew 0.7%. In Atlanta, CPI climbed 0.1% in the short term and 1.7% year-over-year.
The markets with the highest CPI changes over the past two months were Denver, Chicago, Phoenix, Minneapolis, Washington, D.C., and Anchorage. Those with the lowest were San Diego, Atlanta, Tampa, Houston, and Miami.
Over the past year, San Diego, Riverside, Los Angeles, Boston, Tampa, and Philadelphia recorded the largest annual inflation gains. Meanwhile, Dallas, Atlanta, Phoenix, Houston, and Detroit posted the lowest year-over-year CPI increases.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.