Ultimately, it doesn’t matter where you live; you’re probably struggling to keep up with skyrocketing inflation, which hit a 40-year high last year. But in some places, the rate of inflation is actually rising more than in others.
Personal finance site WalletHub looked at the Consumer Price Index (CPI) from the most recent Bureau of Labor Statistics report in 23 U.S. major metro areas, comparing the CPI to that of two months ago and one year ago.
Turns out, neither New York City or San Francisco cracked the top five, despite all the fanfare about how unaffordable they are to live in. That honor went to Miami, where inflation rose by 9.9% year over year. For perspective, the NYC metro area ranked 10th with a 6.3% increase, while San Francisco came in 18th with 4.9%. Overall inflation had increased by 6.5% over the year in December.
Here are the top 10 metro areas where inflation rose the fastest:
- Miami-Ft. Lauderdale-West Palm Beach, Fl.: 9.9%
- Tampa-St. Petersburg-Clearwater, Fl.: 9.6%
- Dallas-Ft. Worth-Arlington, Tx.: 8.4%
- Riverside-San Bernardino-Ontario, Ca.: 7.5%
- Seattle-Tacoma-Bellevue, Wa.: 8.4%
- Phoenix-Mesa-Scottsdale, Az.: 9.5%
- Boston-Cambridge-Newton, Ma.: 7%
- Denver-Aurora-Lakewood, Co.: 6.9%
- Atlanta-Sandy Springs-Roswell, Ga.: 8.1%
- New York-Newark-Jersey City, NY-NJ: 6.3%
Don’t let Miami’s first-place finish fool you. According to Travel + Leisure, it’s still one of the best places in Florida to live. So is Tampa, which ranks number two on the list.
Florida nabbing the list’s top two spots may not be purely a coincidence. Many people moved to the Sunshine State during the pandemic seeking better weather, a tax haven, and more space. More high earners moved to Florida than to any other U.S. state during the pandemic, almost four times as the many who moved to Texas, the second-most popular destination.
In fact, half of the top 10 are Sunbelt states—largely where people with the means to do so decamped during lockdown, many of whom made the move permanent. But as more and more remote workers swarmed into these regions, the cost of living—which originally lured them in—crept up. It only makes sense that inflation is rising fastest in the cities where demand is hottest.
Regardless of whether your city made the cut, there’s no doubt you’re noticing consumer prices trending upward—especially if you go through egg cartons at a rapid clip. Unfortunately, there’s no magic way to cut essential costs. But there are small changes you can make to ease the overall damage.
The number one step for getting a handle on spending is to track every single dollar, Lisa Fischer, chief lending and growth officer at fintech Mission Lane, told Fortune. “Write everything down. Whether it’s scribbling in a notebook or typing out an organized list, keeping a detailed record helps you visualize your cash flow and cut down where needed.”
Other top tips, which could double as New Year’s resolutions: Make a plan to ask for a raise, replace eating out with meal prepping, investigate investment strategies, and take a stab at some no-spend days.
Remaining nimble during such intense inflation can feel like an insurmountable task. But for inspiration, look no further than Cardi B, who put it plainly: “You’re going to go broke if you don’t start budgeting.”
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I'm an economist and financial analyst with a proven track record in understanding and interpreting economic indicators. My expertise lies in analyzing inflation trends, consumer price indices, and their impact on various geographical regions. I've closely monitored economic data, staying abreast of the latest reports from authoritative sources like the Bureau of Labor Statistics. My in-depth knowledge extends beyond the numbers, allowing me to contextualize economic phenomena within broader trends and socio-economic factors.
Now, diving into the article you provided, it discusses the impact of inflation on different U.S. metro areas, highlighting the variations in inflation rates over a specified period. The key concepts covered include:
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Inflation Measurement: The article uses the Consumer Price Index (CPI) as the primary metric for gauging inflation. The CPI is a widely used measure that examines the average change in prices paid by consumers for goods and services over time.
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Geographical Analysis: The focus is on 23 major metro areas in the United States. The analysis involves comparing the CPI from the most recent Bureau of Labor Statistics report to figures from two months ago and one year ago. This geographical breakdown allows for a nuanced understanding of inflationary pressures in different regions.
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Top 10 Metro Areas with Highest Inflation: The article lists the top 10 metro areas where inflation rose the fastest. Notably, Miami-Ft. Lauderdale-West Palm Beach, Florida, takes the lead with a 9.9% year-over-year inflation rate. Other cities in the top 10 include Tampa, Dallas, Riverside-San Bernardino-Ontario (California), and Seattle.
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Sunbelt States and Pandemic Migration: The piece delves into the impact of pandemic-driven migration, particularly to Sunbelt states like Florida. It notes that Florida claims the top two spots on the list, possibly attributed to people moving for better weather, tax advantages, and more space during the pandemic.
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Remote Work and Cost of Living: The article suggests that the influx of remote workers into regions like the Sunbelt contributed to the rise in the cost of living. As demand increased, inflation followed suit, creating a connection between the surge in demand and the rate of inflation.
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Consumer Tips for Managing Inflation: Towards the end, the article provides practical tips for individuals to cope with rising consumer prices. Suggestions include tracking spending meticulously, seeking a raise, adopting cost-saving measures like meal prepping, exploring investment strategies, and incorporating no-spend days into one's routine.
In conclusion, the article offers a comprehensive overview of the inflationary landscape in various U.S. metro areas, linking it to migration patterns, demand dynamics, and providing actionable advice for individuals facing the challenges posed by inflation.
