The CPI report in April shows that inflation has declined
Thomas Savidge with the American Institute for Economic Research joins LiveNOW’s Andrew Craft to break down the latest CPI report.
The US inflation rate hit a 40-year high following the COVID-19 pandemic and still continues to affect many Americans across the country.
To determine how inflation is affecting people in different cities, WalletHub compared 23 major metropolitan areas on two key metrics related to the Consumer Price Index (CPI), which measures inflation.
The personal finance company compared the CPI over different time frames to get a picture of how inflation has changed in the short and long term for the cities studied.
“Increases in housing and natural gas prices accounted for 70% of the 3.4% increase in the latest monthly CPI report,” David Skidmore, a Drake University professor, said in a statement. “Older homeowners who have low-fixed-rate closed-end mortgages are staying put, with the result that fewer homes are available for new homebuyers to enter the market. This, along with slow construction of new homes, has increased house prices. Rents have risen to match.”
FILE: A person buys groceries at Lincoln Market in Brooklyn, New York. (Credit: Michael M. Santiago/Getty Images)
Cities with the biggest inflation problems
- Detroit-Warren-Dearborn, MI
- Dallas-Fort Worth-Arlington, Texas
- Urban Honolulu, Hawaii
- San Francisco-Oakland-Hayward, California
- Seattle-Tacoma-Bellevue, Washington
- Anchorage, Arkansas
- Miami-Fort Lauderdale-West Palm Beach, Florida
- St. Louis, Missouri
- New York-Newark-Jersey City, New York, New Jersey
- Philadelphia-Camden-Wilmington, Pennsylvania, Maryland, Delaware
- Phoenix-Mesa-Scottsdale, Arizona
- Los Angeles-Long Beach-Anaheim, California
- Boston-Cambridge-Newton, Massachusetts, New Hampshire
- Riverside-San Bernadio-Ontario, California
- Chicago-Naperville-Elgin, Illinois
See the full list here.
Inflation remains high
High inflation continues to plague the economy, prompting the Federal Reserve to announce last month that it does not plan to cut interest rates until it has “greater confidence” that price growth is slowing steadily to its target of 2%.
This means that products and services continue to be valued by many Americans.
What causes inflation?
There are three factors that can lead to inflation, which include demand-pull inflation, cost-push inflation, and built-in inflation.
or new report discovered that childcare costs they are now growing at twice the rate of inflation. Meanwhile, a Wall Street Journal report published last month said chains such as Starbucks, Wendy’s and McDonald’s are also feeling the squeeze as consumers move away from their products.
CONNECTED: These are the brands that consumers are avoiding as inflation remains high
Items sitting on store shelves are also reportedly sitting a little longer than they might have before the COVID-19 pandemic, as some of their loyal shoppers have reached their breaking point and refuse to give more of their paychecks to another heavy. grocery bill.
In fact, more than a quarter of Americans have used meal skipping to avoid paying inflated grocery store pricesaccording to a new poll.
This story was reported from Los Angeles.
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