Report reveals Dallas is the second US city with the biggest inflation problem

A recently released report sheds light on the cities in the United States facing the greatest struggles with inflation in 2024, amid rising prices that have concerned many Americans.

Analysts at WalletHub noted that the COVID-19 pandemic led to a 40-year high in the U.S. inflation rate, which has since moderated. However, as of February 2024, the year-over-year inflation rate remains at 3.2%, above the target rate of 2%, prompting considerations by the Federal Reserve to potentially cut interest rates this year instead of raising them further.

To provide insight into how inflation impacts local economies, the personal finance company compared 23 major Metropolitan Statistical Areas (MSAs) using the Consumer Price Index (CPI), which measures inflation by comparing CPI data for the latest month with data from two months prior and one year prior.

Unfortunately, Dallas has landed among the top five cities on the list, raising significant concerns for its residents. According to the report, Dallas ranks as the second-highest city in terms of inflation rate, with an overall score of 77.78. The CPI changed by 0.90% in the latest month compared to the previous two months, and by 5.30% compared to the same period in 2023.

Similarly, the Houston-Woodlands-Sugar Land area was identified as the 10th city with the highest inflation rate nationwide, scoring 55.56 overall. The study revealed that in the last month, the CPI changed by 1.00% compared to two months before, with a 3.50% increase in CPI compared to February 2023.

Miami holds the highest inflation rate in the country, with a score of 86.11 in the Miami-Fort Lauderdale-West Palm Beach area. The CPI has changed by 1.40% in the past month compared to two months prior, and by 4.90% compared to the same month last year.

According to experts like Wenyi Shen from Oklahoma State University and Professor Zdravka Todorova from Wright State University, factors driving inflation include expansive monetary easing and fiscal measures during the pandemic, supply-side shocks like global bottlenecks and geopolitical tensions, and structural changes in business practices, technology utilization, and environmental impacts.

For more details, including the full report and expert comments, visit WalletHub’s website.