Inflation hits two-year low, but some cities still feel the pinch
WASHINGTON (TND) — The Inflation rate sits at 4% – the lowest it's been in two years – but some U.S. cities are still experiencing rising inflation rates.
A new report from WalletHub, looked at inflation rates in 23 major metropolitan areas and compared the Consumer Price Index over the last year` against them. The aim of the study was to get a snapshot of how inflation has changed in the short and long term.
Detroit and Miami are tied for the top cities where inflation is rising the most.
Tampa, Phoenix, and Seattle round out the top five.
In Florida or Tennessee or South Carolina, right now in those states, the housing market is where we see inflation growing the most," Jill Gonzalez, a WalletHub analyst, explained.
She says states in the Midwest are seeing higher prices for gas and groceries.
"It just depends on where exactly you are and what sectors of the economy are feeling the most," said the expert.
According to Gonzalez, some of the places seeing the highest rates of inflation have lower costs of living and with so many economic factors, there's not much a state can do to bring prices down.
The current issue of inflation goes back to the COVID-19 pandemic, supply chain issues, and a labor shortage.
The outlook is a lot brighter than it was say six months ago," she explained.
She says the Federal Reserve's rate hikes are working and inflation will continue to go down.
“Okay, there's some light there," said Jackie Phillips, CEO of UnHeard Media, a St. Louis company that specializes in marketing and strategic planning. “You just still have to be cautious, because that could flip in, you know, 30 days."
Inflation has forced Phillips to change plans for her business.
“I can't bring more people on with the way that the inflation is working," said the CEO.
The high prices have left her with a lot of lessons.
I think the biggest takeaway for me and most of the people who I am connected to is it is also making us become more creative, looking at ways to have streams of revenue as a backup for the backup to the backup," she explained.
Gonzales predicts that Americans should start to feel inflation really cool down within a few months.
By the end of this year, we really should start actually feeling the effects of a decrease in inflation and definitely going into 2024," shr said.
The Federal Reserve has a target to get inflation to 2%.