While the most recent figures indicate a relaxation in certain inflationary measures – even with a surge in gas prices – some cities have experienced more pronounced hikes than others over the past year, as per the Labor Department data released on Wednesday.
The consumer price index rose 3.7% in August from the previous year, a jump from the 3.2% annual rate in July.
However, when adjusted to exclude more volatile categories like food and energy, the inflation growth actually decelerated from 4.7% in July to 4.3% in August, year-over-year.
U.S. Cities with the Highest Inflation Rates in the Past Year
This deceleration in so-called “core” prices suggests that inflation is gradually coming under control, albeit slower than the government’s anticipation as they aim to hit the Federal Reserve’s 2% target.
“We’re getting to the stage where we’ve basically had all the low-hanging fruit in terms of disinflation,” stated Blerina Uruci, an economist at T. Rowe Price. “The progress on core inflation over the coming months is going to be slow, and it’s going to be uneven.”
On a monthly scale, consumer prices leaped 0.6% in August, marking the most significant surge in over a year.
Annually, Florida’s major metros outpace all others in terms of inflation. The Miami-Fort Lauderdale-West Palm Beach region saw a 7.8% spike, with Tampa-St. Petersburg-Clearwater recording a 5.9% rise, tying with Michigan’s Detroit-Warren-Dearborn area.
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A report from July discerned that Florida’s sharp inflationary trajectory is partly attributed to a surge of new residents and tourists.
“Any time you have a population that is growing that is going to push up demand for everything whether its goods, services, food, clothing, vacations, housing, etc.,” Amanda Phalin, an instructional associate professor at the University of Florida’s Warrington College of Business Management Department, informed WalletHub.
Gas prices soared nearly 11%, though they have since stabilized: According to AAA, the average nationwide price at the pump stood at $3.85 on Wednesday, unchanged from a month prior.
Energy costs skyrocketed 5.6% in August alone, with airfares following suit at 4.9%, the initial rate hike after two months of reductions.
While grocery prices edged up .2% from July and show signs of stabilization, the category is 3% pricier than the previous year. After substantial hikes the preceding year, grocery bills remain painfully high for numerous Americans.
The White House Council of Economic Advisors conveyed in a statement on Wednesday that it will persistently monitor the “highly visible” prices of gasoline and food, which significantly impact family budgets.
With information from The Hill