Inflation is highest in Miami

Inflation is highest in Miami.

While inflation has moderated, its impact varies across American cities. In October, the Consumer Price Index (CPI) from the Bureau of Labor Statistics showed inflation at 3.2%, down from September's 3.7%.

However, certain cities are experiencing more than double this national figure. Miami leads the U.S. with an inflation rate of 7.4%, according to BLS data. In contrast, Phoenix and Atlanta, which faced high prices last year, have inflation rates of 2.9% and 3.2%, respectively.

One major factor contributing to this trend is the surge in housing prices. In October, Miami's home prices rose by 1.2% compared to the previous year, with a median price of $557,000, as reported by Redfin. In contrast, the national median home price for the month was $413,874. Miami's inflation is significantly influenced by the sharp increase in shelter prices, rising by 11.9% in October, with rents surging by an impressive 12.9% for the month.

These local figures surpass national averages, as the shelter index, the largest contributor in October, increased by 6.7% over the past year, according to BLS data.

William Luther, director of the American Institute for Economic Research's Sound Money Project and associate professor of economics at Florida Atlantic University, attributes this trend to the recent influx of people to South Florida. "Those new arrivals will eventually cause living standards and tax revenues to rise. But they also push prices up in the near term for items with slow-to-adjust supplies," Luther explains.

The data reveals that the cost of food is also higher in Miami. In October, overall food prices increased by 4.3%, compared to the national average of 3.3%. Additionally, food away from home in Miami saw an 8.2% increase, surpassing the 5.4% national average.