Rising prices are a concern for many Americans, and a recently released report reveals which American cities will suffer the most from inflation in 2024.
Analysts at WalletHub said the coronavirus pandemic pushed U.S. inflation to its highest level in 40 years, but it has since subsided.
As of February 2024, year-on-year inflation was 3.2%, still above the target rate of 2%. The Fed may cut interest rates rather than raise them this year.
To help people understand how inflation affects local economies, the personal finance company compared 23 major metropolitan statistical areas (MSAs) using the Consumer Price Index.
It measures inflation by comparing the CPI for the most recent month for which BLS data is available, from two months ago to one year ago.
Unfortunately, Dallas is in the top five on the list, causing serious concern for residents.
According to the report, Dallas was the second-highest city in terms of inflation rate.
Dallas-Fort Worth-Arlington's overall score is 77.78. The Consumer Price Index (CPI) changed by 0.90% in the past month compared to the past two months.
Furthermore, the CPI for the most recent month increased by 5.30% compared to the same period in 2023.
With an overall score of 55.56, the Houston-Woodlands-Sugar Land area ranks 10th among cities with the highest inflation rates in the United States. According to this study, the CPI last month changed by 1.00% compared to his two months ago, and compared to February 2023, the CPI increased by 3.50%.
Miami has the highest inflation rate in the country, with the Miami-Fort Lauderdale-West Palm Beach area scoring 86.11.
Over the past month, CPI has changed by 1.40% compared to 2 months ago. Furthermore, compared to the same month last year, it increased by 4.90%.
What are the main factors currently driving inflation?
According to Shen Wenyi, an associate professor at Oklahoma State University, the unprecedented expansionary monetary easing and fiscal measures deployed during the pandemic, as well as global supply bottlenecks and the Russia-Ukraine war during and after the pandemic, This is said to be due to a supply-side shock. It is considered an important factor driving inflation.
Zdravka Todorova, a professor at Wright State University, said that while inflation has been declining, some of the factors are structural to the economy. Business practices, the use of high-tech inputs, concentration, the price impact of the pandemic, environmental and institutional factors, and war are important factors causing inflationary pressures.
Todorova also said that environmental factors are driving inflation, making it structural. Increased heatwaves, droughts, floods, soil erosion, water scarcity and pollution are not occasional disasters. They contribute to scarcity, uncertainty, and rising costs, as evidenced in multiple critical sectors such as food, energy, and automobiles.
The full report, methodology, and additional expert comments can be read on WalletHub's site.
