How Inflation Affects Americans Differently
According to a report by the Wallet Hub finance portal, inflation affects all Americans differently, as there are cities in the country where the rate is higher than in other areas. The current percentage according to official figures from the US government reflects a considerable drop, considering that levels in January stood at 6.4 percent.
The Reason for the Drop in Inflation Rates
The drop in inflation rates is the result of an aggressive monetary policy by the United States Federal Reserve (Fed). The Fed has been increasing interest rates in order to reduce inflation by up to two percent. Although this measure has paid off, the truth is that the national rate differs from the state rate, as there are various cities in the country where current inflation exceeds eight percent.
Cities with the Highest Inflation Rates
The report by Wallet Hub reveals that these are the cities of the American Union where inflation is highest:
- Tampa-St. Petersburg-Clearwater, FL – 8.9%
- Phoenix-Mesa-Scottsdale, AZ – 8.5%
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD – 6.9%
- Seattle-Tacoma-Bellevue, WA – 8.0%
- Detroit-Warren-Dearborn, MI – 7.0%
- Atlanta-Sandy Springs-Roswell, GA – 7.2%
- Riverside-San Bernardino-Ontario, CA – 7.3%
- Dallas-Fort Worth-Arlington, TX – 7.5%
- Houston-The Woodlands-Sugar Land, TX – 5.0%
The conclusions of the Wallet Hub report are the result of a comparison between the consumer price index (CPI) of the last month with that of a year ago. While inflation affects everyone differently, it’s important to stay informed about the current rates in your area and how they may impact your finances.
If you’re planning for retirement, it’s important to keep inflation in mind when making financial decisions. That’s why you may also be interested in learning why the Social Security COLA may be much lower next year and which cities in the United States will see the highest inflation rates in 2023.