Some cities and states are battling the ongoing US inflation crisis better than others, according to the Bureau of Labor Statistics.
Inflation was announced on Thursday in the United States over the past month, a sign that price hikes that have been hitting Americans are easing as the economy slows and consumers become more cautious.
Despite the good news, figures from the Bureau of Labor Statistics show that some cities are still considered inflation hotspots.
In October, Phoenix reported an inflation rate of 12.1 percent for certain commodities. That’s down 0.9 percent from the city’s record high of 13 percent reported earlier this year.
Inflation is believed to be hitting the area hardest because Phoenix is also one of the fastest growing places in the country — meaning supplies of food, gas and housing can’t keep up.
New data from the Bureau of Labor Statistics shows the cities hardest hit by inflation
According to Redfin, the median price of a home in Phoenix rose 9 percent in September compared to the same time last year.
Other cities struggling with high inflation rates are Atlanta, where prices rose 10.7 percent, and Miami, where prices rose 10.1 percent.
Overall, the Republican-led states of Georgia and Florida saw prices rise 8.3 percent.
That’s the same number seen in South Carolina, North Carolina, Maryland, Virginia, and West Virginia.
Heading west, Texas, Oklahoma, Arkansas and Louisiana have slightly higher inflation at 8.4 percent.
In the North, New York, New Jersey, Pennsylvania and Delaware reported rates of 6.8 percent, below the national average.
The consumer price index rose 7.7 percent year-on-year in October, marking the fourth straight month of decline from a 40-year high of 9.2 percent hit in June.
Core inflation excluding volatile food and energy prices fell to 6.3 percent on an annualized basis after hitting a four-decade high of 6.6 percent in September.
The numbers were all lower than economists were expecting, and Wall Street reacted positively, with the Dow Jones Industrial Average gaining 750 points, or 2.31 percent, on the open, rising to 33,264.
Annual inflation in the US remained stubbornly high at 7.7 percent last month but declined for the fourth straight month
As mortgage rates have risen and house prices have fallen, the US housing market has cooled significantly since the days of the pandemic boom. October home selling prices are not yet known as mortgage rates rose to over 7% in a few weeks
Gasoline prices rose again in October after falling for several months since peaking in June
“Today’s October CPI reading bodes well for consumers, who have struggled to absorb the ongoing pressures of inflation on household budgets in recent months,” said Scott Brave, head of economic analysis at decision intelligence firm Morning Consult.
Brave added that the latest report, along with other recent data, “suggests that households have received a welcome respite from the inflation sting over the past month”.
Used-car prices, which skyrocketed last year when a shortage of computer chips severely reduced availability of new cars, fell 2.4 percent from September to October.
And energy services prices fell thanks to a 4.6 percent monthly price drop at natural gas utilities as natural gas prices eased from recent highs.
However, the price of gasoline rose 4 percent from September to October, reversing three straight months of monthly declines.
The dollar fell across the board for a second straight day on Friday as investors favored riskier currencies after signs of slowing US inflation fueled arguments for the Federal Reserve to ease its steep rate hikes.
Friday’s dollar weakness was a continuation of the move sparked after Thursday’s data showed US consumer inflation rose 7.7 percent year-on-year in October, the lowest rate since January and below forecasts of 8 percent .
Against a basket of currencies, the dollar fell about 3.8 percent in two sessions, posting its biggest two-day percentage loss since March 2009.
The U.S. currency’s long rally over the past two years had attracted a multitude of dollar bulls, leading to crowded positioning, and Thursday’s data had many of them looking for a quick exit, strategists said.
“It’s not just short-term trend followers, momentum players that need to exit positions, but some long-term structural long dollar positions need to be liquidated,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
The dollar fell 1.7 percent against the Japanese yen to $138.55, while the euro gained 1.46 percent against the US unit to $1.036.
Fed Chair Jerome Powell is pictured above. Many economists are warning that by continuing to aggressively tighten credit, the Fed is likely to trigger a recession by next year
“The dollar is one of the most overvalued markets — there’s a strong chance we’ve seen the top,” Jim Cielinski, global head of fixed income at Janus Henderson Investors, told the Portal Global Markets Forum on Friday.
Still, some strategists cautioned that dollar bears remain vulnerable to a potential near-term rally.
“Yes, more people are convinced that the dollar has peaked, but the movement has been so violent that I caution people not to chase it,” Bannockburn’s Chandler said.
The dollar found little support on Friday after survey data showed that US consumer sentiment fell in November, dragged down by ongoing concerns about inflation and higher borrowing costs.
The risk-sensitive Australian and New Zealand dollars gained 1.4 percent and 1.6 percent respectively against the greenback.
Investors’ risk appetite received an additional boost as Chinese health officials eased some of the country’s tough COVID-19 restrictions, including reducing quarantine periods for close contacts of cases and those entering the country.
Sterling, meanwhile, rose 1.22 percent against the dollar to $1.1853 after UK data showed the economy did not contract as much as expected in the three months to September, although it is still mired in what will likely be a lengthy recession entry.
The dollar fell 2.4 percent against the Swiss franc to CHF 0.94025 after Swiss National Bank Governor Thomas Jordan said on Friday the bank was ready to take “any action necessary” to rein in inflation to lower their target range of 0-2%.
Cryptocurrencies remained under pressure due to the ongoing turmoil in the crypto world following the fall of exchange FTX. FTX’s native token, FTT, was last down 26.7 percent to $2,731, bringing its month-to-date losses to nearly 90 percent.
Bitcoin fell 4.6 percent to $16,747.