(NewsNation) — Inflation is rising the most in the Phoenix-Mesa-Scottsdale, Arizona area, according to a new report from WalletHub.
Inflation has been a hot topic with both politicians and the millions of American affected by higher prices on everything from fuel to food.
“We are now moving out of a pandemic where economic activity was pushed almost to a halt,” Linda Loubert, a professor of economics at Morgan State University, said in the report. “It takes time to get back into equilibrium with goods and services and the prices we pay for them.”
WalletHub used data from the Consumer Price Index, which measures inflation, to compare 23 major metropolitan statistical areas.
The other cities where inflation is going up the most, in order, are:
- Phoenix-Mesa-Scottsdale, Arizona
- Atlanta-Sandy Springs-Roswell, Georgia
- Tampa-St. Petersburg-Clearwater, Florida
- Miami-Fort Lauderdale-West Palm Beach, Florida
- Dallas-Fort Worth-Arlington, Texas
- Riverside-San Bernardino-Ontario, California
- Denver-Aurora-Lakewood, Colorado
- Baltimore-Columbia-Towson, Maryland
- Minneapolis-St.Paul-Bloomington, Minnesota
- Houston-The Woodlands-Sugar Land, Texas
Although inflation slowed to 8.3% in August, it still remains high, according to the Bureau of Labor Statistics. In July, it was at 8.5%, and inflation previously reached a four-decade high of 9.1% in June.
There were lower prices for gas and cheaper used cars, which slowed inflation, but other items saw prices rise.
Most Americans, 56%, say these price increases have caused financial hardship in their households, a recent Gallup poll found. That’s up from 49% in January, and 45% in November.
While the Federal Reserve has hiked interest rates to quell inflation, it has remained higher than expected. The Fed is expected to announce another increase next week.
Marie Duggan, an economics professor at Keene State College in New Hampshire, said raising interest rates is a “double-edged sword.”
When companies buy out competitors through mergers, she said in the report, they often do this with borrowed money.
“Thus, raising the interest would reduce the incentive to undertake mergers and, in that sense, would be good for consumers, as it would create more choices and help bring prices down,” Duggan said. “On the other hand, small independent firms use low interest rates to invest in new equipment and produce quality. Raising interest rates would make it harder for small independents to thrive”