Residents living in the Dallas-Fort Worth-Arlington metro area are dealing with the second-highest inflation burden in the country.
The DFW metro ranked No.2 for U.S. cities with the biggest inflation problem, according to a new study from WalletHub.
The consumer price index for DFW rose 0.9% for the two months ending in January and 5.3% over the last 12 months, according to data from the U.S. Bureau of Labor Statistics (BLS). By comparison, the national inflation rate rose only 3.1% over the last year.
“While the [national] inflation rate has declined, some of its drivers have become structural to the economy,” said Zdravka Todorova, professor of economics at Wright State University. “Business practices, utilization of high-tech inputs concentrations, pandemic effects on pricing, environmental and institutional factors, and wars are important factors that lead to inflationary pressures.”
According to WalletHub, the only metro area with a higher inflation ranking than DFW was the Miami-Fort Lauderdale-West Palm Beach metro region in Florida. The DFW metro area received an inflation score of 77.78, while Florida’s coastal metro scored 86.11.
Image by WalletHub
Despite DFW having a higher inflation rate on an annual basis, the Miami-Fort Lauderdale-West Palm Beach area has a higher inflation rate on a month-over-month basis, according to WalletHub.
DFW’s Core CPI, which excludes volatile food and energy prices, advanced 1.1% for the two months ending in January, said Michael Hirniak, assistant commissioner for regional operations at BLS. He notes that rising shelter and recreation costs were the most significant contributors to local inflation.
The BLS report notes that falling gasoline prices led to a 0.2% decline in the energy index and that food prices have remained flat over the last two months.
The Houston-The Woodlands-Sugar Land metro area of Texas also made the list of the top metropolitan statistical areas with the biggest inflation problem, coming in at No.10. Inflation in the region rose 1% for the two months ending in January and 3.5% over the last 12 months.
The study indicated that the year-over-year CPI change in the DFW area was three times higher than the lowest metro on the list, Anchorage, Alaska.
To view the full report and the methodology, click here.