Inflation continues to overstay its welcome. However, it slowed down some.
The Consumer Price Index report was released recently, with headline CPI rising 0.2%. Core inflation is 2.9%, a slight increase from May.
Using recent CPI reports, WalletHub released a story to discover which cities were hardest hit by inflation.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To determine this study, WalletHub examined 23 metro areas, calculating how the CPI changes from two months and one year ago impacted the prices consumers in these areas are paying.
The 10 cities inflation changes impacted the most
Here are the 10 cities where inflation has hit residents the most:
Overall Rank | MSA | Total Score | Consumer Price Index Change (Latest month vs 2 months before) | Consumer Price Index Change (Latest month vs 1 year ago) |
|---|---|---|---|---|
1 | Seattle-Tacoma-Bellevue, WA | 84.72 | 1.40% | 2.70% |
2 | Boston-Cambridge-Newton, MA-NH | 77.35 | 1.10% | 3.00% |
3 | Chicago-Naperville-Elgin, IL-IN-WI | 72.76 | 0.80% | 3.50% |
4 | St. Louis, MO-IL | 70.41 | 1.10% | 2.50% |
5 | San Diego-Carlsbad, CA | 69.23 | 0.60% | 3.80% |
6 | New York-Newark-Jersey City, NY-NJ-PA | 68.91 | 0.70% | 3.50% |
7 | Denver-Aurora-Lakewood, CO | 62.39 | 1.00% | 2.20% |
8 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 62.29 | 0.60% | 3.30% |
9 | Urban Honolulu, HI | 61.65 | 0.80% | 2.70% |
10 | Riverside-San Bernardino-Ontario, CA | 56.41 | 0.70% | 2.60% |
Factors influencing inflation
The CPI report sheds some light on where things are heading, and for the short term, it indicates prices are increasing in line with what economists expected. That said, these numbers don't factor in the impacts of tariffs. And many people are still feeling the pinch of higher prices.
Inflation's culprits are the usual suspects: Rising costs in insurance, energy and shelter continue to snowball consumers' budgets. Add in the ongoing trade wars and tariffs, and the result is higher prices on everyday items.
"While the CPI release showed some early signs of tariff impact, on the whole, underlying inflation remained muted," Kay Haigh, global co-head of Fixed Income and Liquidity Solutions in Goldman Sachs Asset Management, told Kiplinger.
She added, "Price pressures are expected to strengthen over the summer, and the July and August CPI reports will be important hurdles to clear."
Shielding against inflationary measures
The CPI report shows inflation is right in line with expectations. However, since it didn't factor in the impact of tariffs yet, it's anyone's guess where the numbers go in the future. It also gives you some time to protect your money against rising costs.
One thing to watch is whether the Fed cuts interest rates soon. CME FedWatch projects there's a 60% chance that rate cuts will come at the September meeting.
While high-yield savings accounts have dipped somewhat, you can still earn a rate above 4% if you get this done soon. Here are some of the top choices:
A high-yield savings account is only one solution. If you want to outpace inflation with your earnings, the best option continues to be investments, as historically, they earn a much higher rate of return.
One of our top online brokers is Fidelity. They offer free advice to newer investors with a portfolio of less than $25,000. If you have a portfolio exceeding this amount, you'll have access to a live agent for a fee of 0.35% of your assets.
And with prices rising slightly faster than anticipated, having the right budgeting app can ensure you're maximizing your savings and investment goals, while curtailing spending that isn't helping you reach them.
The bottom line on inflation's impact
The CPI report shows inflation is staying in line with expectations, at least for now. And the WalletHub reports shows where inflation changes have the most impact.
Whether you live in one of these areas or not, having a plan in place now can help you find solutions that outpace inflation.
Related content
-
Callable CDs Have High Rates. We Still Don't Recommend You Get ThemInvestors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.
-
High Mortgage Rates Are Holding My Retirement Hostage: Can I Still Downsize and Retire?We ask retirement wealth advisers what to do.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can BenefitHere's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.
-
This is the Best CD to Get Amid Rate UncertaintyThis CD helps you earn more than 4%, with quick access to your cash if you need it.
-
Is It Time to Cut the Cord on Your Landline?With rising costs and evolving technology, many are rethinking their home phone service. Here's how to decide if it's time to let go.
-
Can AI Help With Your Finances?ChatGPT and other artificial-intelligence tools will streamline certain tasks, but don't count on them to get everything right.
-
Neglecting Car Maintenance Could Cost You More Than a Repair, Especially in the SummerWorn, underinflated tires and other degraded car parts can fail in extreme heat, causing accidents. If your employer is ignoring needed repairs on company cars, there's something employees can do.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the RoadFrom student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 YearsBuilding wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
You're Divorced, But the Work Isn't Over: A Guide to Five Financial Tasks to Do ASAPOnce your divorce is settled, don't waste time. You've got to tie up some important loose ends or risk losing money and facing tax consequences.
