Americans across the United States have been facing record inflation, but one city in particular has risen to more than double the national average, according to WalletHub.
To determine the cities where inflation is rising the most, the personal finance company WalletHub compared 23 major Metropolitan Statistical Areas across two metrics related to the Consumer Price Index, which measures inflation, using the latest data available from the Bureau of Labor Statistics.
With a 9% inflation rate for the 12 months ending in April, Florida’s Miami-Fort Lauderdale-West Palm Beach area has the highest inflation rate of any metro area included in the study.
Metro areas that more closely mirror the Federal Reserve’s target for inflation, based on the Personal Consumption Expenditures index, include Minneapolis, which had an inflation rate of 1.8% in May from a year earlier, and Urban Honolulu at 2%.
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A source of Florida’s high inflation can be linked to a sharp rise in population fueled by remote workers, CNN’s Bryan Mena and Alicia Wallace reports. Since at least 2016, New York has topped the list of states where residents are fleeing for the Sunshine State, data from the Census Bureau shows.
Housing costs account for almost a third of the Labor Department’s CPI, which is also based on prices of food, clothing, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living.
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The University of Michigan’s consumer sentiment index rose to 63.9% in June, compared to 59.2% in May, at the time the lowest level since November 2022. Inflation hit a 40-year high last year.
Consumer sentiment measures how Americans feel about their finances and the economy. It’s also a tool for businesses to gauge their brands’ impact. Consumer sentiment index is also 28% above the historical low from a year ago and “its upward trajectory” might climb, Joanne Hsu, director of University of Michigan’s Surveys of Consumers, told USA TODAY. Overall, “sentiment remains low. A majority of consumers still expect difficult times in the economy over the next year,” Hsu said.
Contributing: Terry Collins, Swapna Venugopal Ramaswamy USA TODAY
