Denver, Colorado suffers from the fastest-growing inflation rate of any US city, new research shows.
The annual inflation rate rose 3.2 percent last month — a slight increase from June’s 3 percent rate, the Bureau of Labor Statistics said on Thursday.
But certain cities fared much worse than others. A study by personal finance website WalletHub ranked the five US cities with the biggest inflation problem.
Denver’s annual inflation rate is currently 4.7 percent — more than a percentage point higher than the national inflation rate.
Of even greater concern, inflation has seen the sharpest rise over the past two months, rising 1.3 percent.
WalletHub analyzed how consumer costs affect people in different cities. Twenty-three major statistical metropolitan areas were compared
It tied with St. Louis, whose inflation rate also rose 1.3 percent over the past two months. However, St. Louis has a lower annual inflation rate of 3.10 percent.
The researchers also ranked Atlanta, Detroit and Seattle among the top five cities with the biggest inflation problems.
In comparison, Anchorage, Alaska had the “least” inflation problem. The city has a negative inflation rate of -3.3 percent, a rate that has changed minimally over the past two months.
Washington, Boston, Chicago and Minneapolis were also identified by the researchers as having the “least” inflation problems. These cities all had an annual inflation rate of less than 3 percent.
WalletHub analyzed how consumer costs affect people in different cities. Twenty-three major statistical metropolitan areas were compared.
Differences in inflation between different states are often due to the respective real estate markets.
In Denver, for example, experts said high housing costs were keeping inflation high.
Leeds Business Research’s Brian Lewandowski recently told CBS Colorado, “The residential component of DPI is 44% of the total basket and for the Denver-Aurora-Lakewood region it was up 8.8% year over year versus 6.2% nationally. ’ and 7.1% for the mountainous region.
“It shows that we have higher house price inflation than the country as a whole.”
This comes after Florida was identified as the state with the highest rate of inflation in a Bureau of Labor Statistics report last month.
At the time, analysts blamed Florida housing costs for the blistering interest rate.
US inflation has risen to an annual rate of 3.2 percent — a slight increase in July from June’s 3 percent annual increase
Used car and airline ticket prices fell while housing and vehicle insurance costs rose
Amanda Phalin, an economist at the University of Florida, said, “A lot of people still come to Florida because the economy is really strong, and a lot like the fact that we don’t have an income tax like we have in New York.” For example.
“And in places like Miami, we’re seeing a lot of real estate demand from non-Floridians or non-American investors — generally wealthy people who want a nice home here.”
However, the latest data suggests that prices in the Sunshine State may finally be softening.
Tampa and Miami both saw the smallest price changes over the past two months — although their annual rates were 5.9 percent and 6.9 percent, respectively.
In July, the annual inflation rate across the country rose to 3.2 percent.
It was the first time in 13 months that the consumer price index had accelerated.
Prices rose 0.2 percent month-on-month through July, mainly due to the cost of accommodation, which includes rent. That accounted for 90 percent of the monthly increase, according to the Bureau of Labor Statistics.
However, this modest monthly increase is the same as in June, which could potentially prevent the Federal Reserve from raising rates again in September.
The monthly increase was also in line with forecasts, while the annual rate was slightly below the forecast 3.3 percent.