5 Cities Hit the Most by Inflation Within the Last Year
Inflation has affected people in virtually every town and city across the U.S. since 2023. But some major cities got hit worse than others, according to a recent study from WalletHub.com.
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The cities that got hit the hardest generally showed rapid population growth, which leads to increased demand for goods and services and drives prices up. While post-pandemic supply chain issues led to shortages of goods, further driving inflation, other factors also contribute.
The study analyzed the Consumer Price Index in major metropolitan areas from March 2024 (or the most recent month available) and March of last year. Which city is struggling the most with inflation right now?
Dallas, Texas
Dallas, Texas, came in as the city with the highest inflation within the past year, with a jump three times the inflation experienced by the last city on the list, Anchorage, Alaska. Prices in Dallas rose 5.3% year-over-year.
Even so, there could be some relief for Dallas residents, as inflation only rose 0.90% in the past two months, one of the smallest increases in recent months. Home prices contribute significantly to inflation in Dallas.
The Texas metroplex attracted roughly 278 people per day through migration between July 2022 and July 2023, according to an article at ABC affiliate website WFAA.com. Demand in the area led to an increase in housing costs, with the median price of homes in Dallas rising from $133,300 in 2018 to $395,788 in 2023, according to KeraNews.org.
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Miami, Florida
The South Florida city of Miami came in second with the high inflation compared to last yer, with an increase of 4.90% in the past year. Inflation continues to jump in Miami, with a 1.40% increase in the past two months.
As in Dallas, population growth led to a rise in housing prices, which is one factor in high inflation. Housing prices in the Miami-Fort Lauderdale-West Palm Beach region rose 12.5% since August 2022, according to TheCapitolist.com.
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Honolulu, Hawaii
Honolulu, Hawaii, experienced high inflation year-over-year and within the past two months. Inflation rose by 4.80% in the past year, putting it third on the list. Prices also jumped 1.50% in the two most recent months.
Hawaii tends to be more expensive than the continental U.S. because many goods must be shipped and there aren’t many industries on the islands, apart from tourism. An article from January 2024 at DwellHawaii.com pointed out that a single person would need an annual salary of roughly $50,000 to $60,000 to survive in Hawaii, much less to live comfortably.
Riverside, California
California cities, particularly Los Angeles and San Francisco, regularly make lists of the most expensive places to live in the U.S. The southern city of Riverside, California, roughly 60 miles east of L.A. in the region known as the Inland Empire, is catching up.
It ranked as the U.S. city with the fourth highest rate of inflation, with year-over-year inflation of 4.30% and a two-month increase of 1.40%. Housing and transportation are the primary factors driving inflation, with gas and tolls contributing to a high cost of living, according to the CAStorage.com blog.
Seattle, Washington
Seattle, Washington, rounds out the top five U.S. cities with the highest inflation rates in the past year. The Seattle-Tacoma-Bellevue region of Washington experienced year-over-year inflation of 4.30%, and an increase of 1.20% for the past two months.
An article in the Seattle Times outlined some of the consumer goods and services driving inflation in the northwest city. These include groceries, haircuts, clothing, and veterinary care. As with other cities experiencing high inflation, housing costs also contributed to rising prices.
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This article originally appeared on GOBankingRates.com: 5 Cities Hit the Most by Inflation Within the Last Year
