SAN DIEGO — Americans are dealing with the worst inflation in over 40 years, yet a new study by personal finance website WalletHub shows some good news for San Diego.
It is the city with the fifth lowest inflation growth.
WalletHub compared 23 major metropolitan statistical areas across two key metrics related to the consumer price index, which measures inflation.
They measured the consumer price index change by comparing it from two months ago and a year ago to get a snapshot of how inflation has changed in the short and long term.
To see the full list, click here.
Number one on the list is suffering the most from inflation while number 23 is suffering the least. The San Diego-Carlsbad area ranked 19th on the list.
WalletHub analyst Jill Gonzalez said, "even though it feels palpable, it is actually doing a lot better than bigger cities in the country."
San Diego State University Associate Professor of Economics, Hisham Foad explains what current factors are driving inflation.
"You’ve got two broad reasons why prices are going up. The demand side factors like low-interest rates, stimulus package, people saving money at beginning of Covid-19 when they couldn’t travel and now pent up spending," said Foad.
He also explains how interest rates have an effect on the housing market.
"San Diego has always been a high cost of living category, certainly housing. San Diego isn’t that different nationwide as the rates are going, so you know since May cost of living has gone up 1.2%," said Foad. "We spend a lot more here than our budget on housing. We are starting to see a drop in housing prices mostly by rising interest rates."
He also shares what the current inflation rate tells us about the future of the economy.
"The long-term outlook may have a little bit of recession, but a short one. The latest inflation report seems to be under control and unemployment numbers are good and low," said Foad.
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