FINANCE
These are the cities most affected by inflation in the US in 2024
Inflation is still not close to the Fed’s 2% target and a number of US cities are feeling the heat more than others.
In 2024, the United States has seen a steady rise in inflation, with the consumer price index (CPI) increasing by 3.3% year-on-year.
Among the cities most affected by inflation in the US, several metropolitan areas stand out for their high rates of price increases. According to recent data from WalletHub, the top five cities with the highest inflation rates are:
- Urban Honolulu, HI: With a year-over-year inflation rate of 5.2%, Honolulu tops the list. The city’s high cost of living, particularly in housing, contributes significantly to its high inflation rate.
- Dallas-Fort Worth-Arlington, TX: The 5% year-on-year rate has been caused by a major housing shortage.
- Miami-Fort Lauderdale-West Palm Beach, FL: 4.5%.
- Seattle-Tacoma-Bellevue, WA: With a 4.4% increase in prices, St. Louis rounds out the top five. The city’s high inflation rate is largely driven by housing costs and energy prices.
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: Philadelphia’s 4.1% increase in prices puts it in the top five, with housing and transportation costs contributing significantly to this increase.
These cities are not the only ones experiencing high inflation rates. Other metropolitan areas such as Los Angeles, Boston, Baltimore, Atlanta, and San Bernardino also have high inflation rates, making it essential for residents to be aware of these trends and adjust their spending accordingly.
How will inflation be for the rest of the year?
Experts predict that inflation will continue to be a significant issue for the US economy in the coming months. The Federal Reserve aims for a 2% target, though inflation has been stubborn and the Fed has seen no need to yet reduce interest rates. This is keeping money borrowing expensive.
“The expectation is that inflation in these areas should eventually fall as these price effects run their course in different markets, but this is admittedly taking longer than many initially predicted,” Grant Black, an economist at Lindenwood University, said in WalletHub’s study.
“Thankfully, recent inflation data show that food and fuel prices have begun falling modestly, which is a benefit to consumers’ budgets.”