Inflation has increased the highest rate in these 10 American cities
Across the United States and in cities across the globe, inflation has increased over the last year at a rate unprecedented in recent decades. According to the latest data from the Consumer Price Index, it has driven up costs by 7.7% in the last year, with energy up the most by 17.6%, and food costs up 10.9%.
But while everyone is feeling the pinch, some cities have been impacted more than others.
A recent study of inflation from WalletHub (inflation hit a 40-year high of 9.1% earlier this year) ranks American cities that are being hit the hardest based on metrics related to the Consumer Price Index, which measures inflation.
“We compared the Consumer Price Index for the latest month for which BLS (Bureau of Labor Statistics) data is available to two months prior and one year prior to get a snapshot of how inflation has changed in the short and long term,” an explainer about the findings says. “This high inflation is driven by a variety of factors, including the continued presence of the COVID-19 pandemic, the war in Ukraine and labor shortages.”
In response, The Federal Reserve, the nation’s central bank, has hiked its rates aggressively to combat rising prices. Most recently, the Fed raised its short-term borrowing rate by 0.75 percentage point to 5.75%-4%, representing the highest level since January 2008. If the latest report from the Bureau of Labor Statistics on the Consumer Price Index is an indicator, these efforts to cool inflation are starting to have a positive impact. October’s consumer price index report, published Thursday, indicated a 0.4% increase for the month, which is lower than the 0.6% increase economists were anticipating and could mean that inflation is reaching its peak.
