Florida is now America's inflation hotspot | CNN Business

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Florida is America’s inflation hotspot, thanks to a persistent problem with sky-high housing costs.

The Miami-Fort Lauderdale-West Palm Beach area has the highest inflation rate of metro areas with more than 2.5 million residents, with a 9% inflation rate for the 12 months ended in April. That’s more than double the national average of 4%, according to data from the Consumer Price Index. The Tampa-St. Petersburg-Clearwater metro had the third-highest inflation rate in the country, at 7.3% for the year ended in May. Other metro areas, however, have seen some welcome progress.

“Shelter costs grew faster in Minneapolis and peaked a little bit earlier,” said Tyler Schipper, associate professor of economics at the University of St. Thomas in Minneapolis. “They peaked about six months before they did on average of the rest of the country.” Also likely playing a role is how the Bureau of Labor Statistics tabulates shelter costs within the CPI and the timing of when readings are collected for various regions. Shelter carries a lot of weight in the CPI calculations.

 

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