- Two major metro areas in Florida remain at the very top of national year-over-year inflation rankings, but neither made the list for inflation growth in the last two months
- A WalletHub study, based on U.S. Bureau of Labor Statistics data, reveals a 7.8 percent increase in the Consumer Price Index (CPI) for Miami and a 6.7% increase for Tampa compared to the previous year, significantly outpacing all other cities in the nation.
- Factors contributing to this inflation include population growth and rising housing costs, with Florida cities defying the national trend of declining inflation rates.
Two Florida metro areas continue to top national rankings for inflation woes in year-over-year measures, but on the bright side, inflation hasn’t worsened over the last two months. A new study by WalletHub reveals that the Miami-Fort Lauderdale-West Palm Beach and Tampa-St. Petersburg-Clearwater regions are experiencing higher rates of inflation than all other metropolitan areas across the country. This comes at a time when inflation appears to be slowing in other parts of the United States.
The study used data from the U.S. Bureau of Labor Statistics to analyze the change in inflation rates in 23 major metropolitan areas. Miami-Fort Lauderdale-West Palm Beach saw a staggering 7.8 percent increase in its Consumer Price Index (CPI) compared to last year, while Tampa-St. Petersburg-Clearwater followed closely with a 6.7 percent increase in the same time frame. The Consumer Price Index is a measure that examines the average change over time in the prices consumers pay for a basic basket of consumer goods and services, such as bread, milk, and other commodities. It’s a crucial tool used by economists to measure inflation.
These figures contrast starkly with the national year-over-year inflation rate, which has moderated to 3.7% as of September 2023.
On the bright side, neither Florida city showed up on the national radar for consumer price index changes over the last two months, a sign that while inflation in both cities may be high, it also appears to have peaked and is holding steady, but at least isn’t getting worse. Experts anticipate a gradual cool-down in inflation over the next two years.
Population growth has been one of the largest contributors to inflation in the Sunshine State. Housing costs are up significantly, especially in the Miami-Fort Lauderdale-West Palm Beach area, where housing costs have jumped 12.5% since August 2022. Housing costs make up about 40 percent of the Consumer Price Index’s calculation.
The rising inflation in these Florida metros is particularly noteworthy, considering a range of national and international factors that are affecting the economy, such as the war in Ukraine, which has impacted food costs, and persistent labor shortages as the economy is still trying to shake off some of the effects of the coronavirus pandemic. Even though inflation rates have begun to decline nationally—down from a peak of 9.1% in June 2022 to 3.7% last month—these two Florida’s cities have defied this trend. Orlando, and Jacksonville, for example, are nowhere near the top of the national list.
A previous report from WalletHub from July 2023 showed that Tampa-St. Petersburg-Clearwater led the country in inflation rates. Miami-Fort Lauderdale-West Palm Beach ranked 8th on that report. A month ago, Phoenix topped both Miami and Tampa but has now slipped to 20th in the nation.