You can’t get through a conversation these days without someone bringing up the word “inflation.” It’s going down, thankfully, but inflation is still a hot topic. So, how much is inflation rising in Michigan right now?
The crew at WalletHub.com has put together a study looking at the largest 23 cities in the U.S. and comparing them based on inflation. “In 2022, Americans are dealing with sky-high inflation, which hit a 40-year high earlier this year,” the study says. “Though inflation has started to slightly trend downward due to factors like the Federal Reserve rate hikes, the year-over-year inflation rate was still a whopping 8.3% in August. This high inflation is driven by a variety of factors, including the continued presence of the COVID-19 pandemic, the war in Ukraine and labor shortages. The government is hoping to continue to rein in inflation with additional aggressive interest rate hikes this year, but exactly how much of an effect that will have remains to be seen.”
To pinpoint the cities where inflation is rising the most, WalletHub compared the 23 largest major MSAs (Metropolitan Statistical Areas) in America across two key metrics related to the Consumer Price Index, which measures inflation. “We compared the Consumer Price Index for the latest month for which BLS data is available to two months prior and one year prior to get a snapshot of how inflation has changed in the short and long term,” they state.
So, where does Michigan fall? One Michigan city, Detroit, is included in the study. The Motor City actually has one of the lowest Consumer Price Index changes, being tied with San Francisco, California, for No. 21 out of 23. Overall, Detroit-Warren-Dearborn has the No. 16 highest inflation rate out of 23 cities. The Consumer Price Index change for the past two months is -0.50% and for the past year is 8.60%. That puts Michigan in the top nine for the lowest inflation rate, out of the 23 major markets analyzed. Find the full study here.