Dallas (Texas), Detroit (Michigan), Honolulu (Hawaii), San Francisco (California) and Seattle (Washington) are the five cities of USA most affected by the inflationaccording to a study by WalletHub.
This analysis compared key metrics of inflation among 23 metropolitan areas in relation to the most recent data from the Consumer’s price index (CPI), as well as CPI data from two months ago and one year ago. The results reveal that the inflation is hitting certain cities the hardest, further stretching Americans’ budgets in those specific areas.
In May, the inflation national rose 3.3% compared to the previous year. However, in detroit was 3.5%, in San Francisco of 3.8%, in seattle of 4.4%, in dallas of 5% and in Honolulu 5.2%, according to the study WalletHub. On the contrary, cities like San Diego, atlanta, Denver, Minneapolis and tampa They experienced increases of between 1.8% and 3.2%.
In addition to the general analysis, the study highlighted that one of the factors driving intense inflation in Dallas is the housing shortagewhich is increasing hosting costs.
“Government restrictions on new home construction are making it difficult for supply to keep pace with demand”he commented Dean Stanselresearch economist at the Southern Methodist University in Dallas to CBS News MoneyWatch. “That lack of housing is driving prices higher than they otherwise would have been,” Stansel added.
In seattlefactors such as the increase in the minimum wage are contributing to the inflation. Stansel explained that these increases in labor costs translate into “higher prices for products from companies that use minimum wage labor, such as fast food restaurants and grocery stores”. These price increases are particularly burdensome for low-income people who are struggling to make ends meet.
The recent publication of data from CPI took to the Federal Reserve to keep its reference interest rate unchanged and to foresee only one rate cut for this year. The Federal Reserve has not revealed when that rate cut will take place.
Within the data, a drop in the prices of air tickets, furniture, clothing, new vehicles, energy and recreation was observed in May, which helped contain the inflation, but lodging costs increased for the fourth consecutive month, rising 0.4%. Costs for health care, used cars and trucks, education, and eating away from home also increased.
Grant Blackeconomist of the Lindenwood Universityhighlighted in the study of WalletHub that Both shelter and fuel costs are the main obstacles preventing inflation from reaching the levels the Federal Reserve wants.
“The expectation is that inflation in these areas should eventually fall as these price effects run their course in different markets, but this is taking longer than many initially predicted.”, he commented. “Fortunately, recent data from inflation “They show that food and fuel prices have begun to fall modestly, which is a benefit to consumer budgets.”
Given the information revealed by the study of WalletHub and the analyzes of the economists cited, it follows that although Several factors are contributing to inflation, solutions and relief seem to be on the horizon, although slower than expected.
