Changes in Inflation by City

from WalletHub, Jan 11, 2024

The U.S. inflation rate hit a 40-year high after the pandemic but has since cooled significantly due to factors like the Federal Reserve rate hikes. The year-over-year inflation rate has moderated to 3.4% in December 2023, which is welcome news to the Federal Reserve as it considers the monetary policy outlook. The government may continue its interest rate hikes in the hope of reining in inflation further. Various factors, such as the war in Ukraine and labor shortages, drive this relatively high inflation.

Inflation rates differ across the U.S., though. To determine how inflation is impacting people in different parts of the country, WalletHub compared 23 major MSAs (Metropolitan Statistical Areas) across two key metrics related to the Consumer Price Index, which measures inflation. We compared the Consumer Price Index for the latest month for which BLS data is available two months prior and one year prior to get a snapshot of how inflation has changed in the short and long term….

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