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No longer a bargain? Inland Empire is inflation hot spot, CPI says – Press Enterprise

“According to a survey,” examines various rankings and scorecards in geographic locations, but keep in mind that these grades are the most common combination of art and data.

Buzz: Like the weather, the surge in summer inflation is hotter inland.

sauce: A reliable spreadsheet analysis of 23 metropolitan areas tracked by the Consumer Price Index examines recent inflation rates and compares them to the pre-pandemic situation for the 12 months to February 2020.

Note: The CPI numbers used are averages for June and July, as only the three regions Los Angeles-Orange County, New York-New Jersey, and Chicago have monthly indexes. The other 20 inflation calculations are bimonthly.

detail

Inland Empire is a national inflation hotspot. Its living expenses are skyrocketing at an annual rate of 6.5%, the third highest level among the 23 metropolitan areas.

Spikes aren’t terribly new. In the 12 months before the coronavirus disrupted the economy, Riverside and San Bernardino counties averaged 2.9% inflation, ranking fourth in the nation. Still, this means inflation has risen 3.6 percentage points during the pandemic era, making it the eighth-largest bump of the 23 metros.

Conversely, LA-OC inflation appears relatively modest at 3.95% from June to July, the fourth lowest in the metro. According to the CPI calculation, it is not a pandemic change either.

In the year before COVID-19 arrived, LA-OC inflation averaged 3.13%, the second highest, and the increase from 0.82 points was the second smallest increase in the country.

This inflation scorecard has some strange stories. Think about who is at the top.

Inland Empire has joined a high-profile, fast-growing market, usually considered “affordable,” and is currently suffering from high inflation …

No.1 Atlanta: The highest annual rate in the country was 6.7% from June to July, compared to 2.5% in the 12 months before the coronavirus infection. Therefore, the pandemic boosted inflation by 4.2 points, making it the fourth-largest jump.

No.2 Tampa: 6.6% vs. 2.2% previrus — up 4.4 points, up 3rd place.

No. 3 (in partnership with IE) Minneapolis: 6.5% vs. 2.4% previrus — up 4.1 points, 5th place.

Next, the contemplation who participated in LA-OC at the bottom of this ranking. This is a large, established metro group, primarily on the coast, with a long history of expensive life …

No. 17 Baltimore: From June to July 4.5% vs. 1.6% in the year before the virus — up 3 points, the 16th largest increase of the 23.

No.18 Washington: 4.4% vs. 1.4% previrus — up 3 points, up 15th place.

No.19 Boston: 4.3% vs. 2% provirus — 2.3 points increase, No. 18.

No. 21 New York: 3.8% vs. 1.8% provirus — up 2 points, no. 20.

No.22 Denver: 3.5% vs. 2.4% previrus — up 1.1 points, 21st place.

No. 23 San Francisco: 3.2% vs. 3.1% previrus — minimal increase.

By the way, San Diego’s latest 6% percentage was the seventh highest in the country. The 3.7-point jump was the seventh largest, compared to 2.3% inflation the year before the virus.

warning

First of all, some critics are generally not big fans of the CPI as a measure of inflation. They claim to underestimate the surge in living costs for a variety of reasons.

For example, consider housing costs, which is the largest component of the CPI. According to this calculation, the cost of placing a roof overhead has increased by 4.3% in the Inland Empire over the past year, but by only 1.6% in LA-OC. Does it sound strange?

In addition, these regional gaps need to be seen with a long lens. Yes, the IE rate is the highest in the three-year history of that inflation index. And while it’s above the coastal neighbors, LA-OC last had a high rate in 2008. Therefore, these are notable price increases everywhere.

Finally, the Federal Reserve, a central bank empowered to monitor living expenses, somehow argues that the recent rise in inflation seen in many measurements is temporary. Why? The federal government said that this was primarily a temporary disruption of the fixable supply chain and the significant discounts needed to sell goods and services in mid-2020 when the coronavirus had frozen most of the economy. I think it is due to the recovery from.

Conclusion

Like many economic trends in this pandemic era, the big picture has many geographical twists.

CPI statistics suggest that some radar-under-radar metros known as “affordable” have been hit by the costs found. Population and labor growth seems to outpace the supply of local goods and services, causing inflation problems.

Does that mean that places like the Inland Empire face to lose some of its low-cost economic appeal?

Considering inflation as one measure of the region’s economic heat, the two extremes of this latest CPI ranking appear to reflect other snapshots of the region’s business environment. And in the era of pandemics, every emerging place has all the mojos.

Jonathan Lansner is a business columnist for Southern California NewsGroup.He can reach at jlansner@scng.com

No longer a bargain? Inland Empire is inflation hot spot, CPI says – Press Enterprise Source link No longer a bargain? Inland Empire is inflation hot spot, CPI says – Press Enterprise

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