It seems safe to say we’re all tired of dealing with 40-year-high inflation — an annual rate of 8.5% nationally as of the end of July 2022. But some places have had it far worse than others.
Several major metros have seen inflation that is near or greater than 12% annually, according to a new WalletHub analysis of inflation rates across the country.
The finance website used Labor Department data from the Consumer Price Index for 23 metropolitan areas to compare price inflation from two months ago and a year ago to see how inflation has changed in the short term and long term. The CPI is one of the most common measures of inflation used by the federal government.
Based on its findings, WalletHub assigned each metro a total score based on its inflation rates. Those scores use a 100-point scale, and the higher the inflation, the higher the score.
Following are the areas where inflation has burned hottest.
1. Anchorage, AK
Total score: 100 out of 100 possible points
Price index increase in July 2022 versus the prior two months: 7.1%
Price index increase in July 2022 versus last July: 12.4%
Anchorage stands out even from the other areas on this list as experiencing the most extreme inflation. While the national annual average inflation rate has declined from more than 9% in June thanks to the relative calm of the past few months, up in Alaska folks have seen prices surge 7% since just May.
2. Phoenix-Mesa-Scottsdale, AZ
Total score: 68.38 out of 100 possible points
Price index increase in July 2022 versus the prior two months: 3.1%
Price index increase in July 2022 versus last July: 12.30%
Phoenix residents have had a harsh year for their finances, and it may be impacting their ability to purchase homes, as we noted in “10 Markets With the Most Home Sales Getting Canceled.” If there’s a silver lining, it seems to be that things are slowly moving toward normalcy in the real estate market.
3. Atlanta-Sandy Springs-Roswell, GA
Total score: 56.22 out of 100 possible points
Price index increase in July 2022 versus the prior two months 2.4%
Price index increase in July 2022 versus last July: 11.5%
Prices are far from peachy in Atlanta, with even the past two months seeing a 2.4% increase in costs. For comparison, the Federal Reserve targets a 2% inflation rate — for the entire year.
The top 10
The remaining metros at the top of WalletHub’s list of cities experiencing the fastest inflation are widely spread out across the country, with the top 10 having only one state featured twice — Florida. Here are the other top cities, along with their total inflation score:
- Seattle-Tacoma-Bellevue, WA: 50.51 out of 100 possible points
- Baltimore-Columbia-Towson, MD: 50.13
- Miami-Fort Lauderdale-West Palm Beach, FL: 49.36
- Houston-The Woodlands-Sugar Land, TX: 48.28
- Detroit-Warren-Dearborn, MI: 45.58
- Tampa-St. Petersburg-Clearwater, FL: 45.22
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: 32.57
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.