Economic stress and real-estate pressure pushed Phoenix’s regional inflation rate in August to 13%, the highest in the nation.
Key Details
- Inflation rates continue to fluctuate in response to stress and economic issues but certain areas of the United States are being hit higher than others.
- Several cities have experienced inflation rates in the double digits including Atlanta (11.7%), Tampa (11.2%), and Miami (10.7%), with the highest rate in the country being Phoenix which reported 13% in August.
- “Inflation soared to 13% in Phoenix last month, a record for any U.S. city in data going back 20 years and more than twice as high as San Francisco,” reports Bloomberg.
Why it’s important
The high inflation in cities like Phoenix and Atlanta is contributing to a 19% increase in housing costs as shortages drive up the cost of rental properties and houses. The national rate is 6.2%.
“Higher prices for homes and apartments contributed to the 13% jump in Phoenix-area inflation over the past 12 months,” says local newspaper AZ Central.
As we reported yesterday, the Bureau of Labor Statistics revealed that August’s inflation rate rose 0.1% to 8.3%, below the recent June peak of 9.1% in the past 12 months. The announcement caused a 4% selloff in the stock market.
“Overall inflation was resurgent in August, dashing hopes of a nascent slowdown even as gasoline prices declined. But the national average of 8.3% masks growing disparities among cities,” says Bloomberg.
Other large cities have reported inflation rates below the national average, including San Francisco (5.7%), Los Angeles (7.6%), and New York City (6.6%), Bloomberg reports.