The inflation rate in North Texas is one of the highest in the country, according to a new study.
U.S. inflation came in at 8.3% in August, a drop of 0.2% from the prior month and a decline of 0.8% from its peak in June, according to the latest CPI report from the U.S. Bureau of Labor Statistics (BLS).
Although the BLS reported low year-over-year results in August, consumer prices remain near a four-decade high.
Despite the U.S. inflation rate reaching 8.3%, a new study from personal finance website WalletHub reports that North Texans are burdened with an inflation rate of 9.4%. That 1.1% difference in national figures means Dallas-Fort Worth consumers are paying more across the board for goods and services.
WalletHub’s study ranked DFW fifth on its list of 23 major U.S. metro areas where inflation has soared higher than the average. Houston was the only other Texas city to make the ranking, scoring 10th on the list with a 0.1% higher inflation rate than the DFW metroplex.
“The government is hoping to continue to rein in inflation with additional aggressive interest rate hikes this year, but exactly how much of an effect that will have remains to be seen,” WalletHub noted.
WalletHub’s methodology was based on a snapshot of current BLS inflation data and compared with figures from two months and one year prior. In its analysis, WalletHub highlighted the heightened inflation effects of the pandemic, the Ukrainian war, and labor shortages.
The Phoenix, Arizona, area had the highest inflation rate among the 23 metros WalletHub studied. Residents in Phoenix are strapped with an inflation rate of 13%, the highest among major U.S. metros, and 4.7% more than the average national rate.
Even with inflation running well above the benchmark federal funds rate of 2%, some economists believe approaching inflation with higher rates could result in unforeseen economic damages.
“There is no logical reason that lowering the overall level of economic activity (the goal of the higher interest rates) actually helps in situations like this,” said John Harvey, a professor of economics at Texas Christian University in Fort Worth. “Furthermore, the only kind of inflation it could possibly address is the good kind.”