Some cities and countries are battling the ongoing inflationary crisis in the US better than others, according to the Bureau of Labor Statistics.
On Thursday, it was announced that inflation moderated in the United States last month, in a sign that the price increase that has hammered Americans is easing as the economy slows and consumers grow more cautious.
Despite the good news, figures from the Bureau of Labor Statistics show that some cities are still considered inflation hotbeds.
In October, Phoenix reported an inflation rate of 12.1 percent in certain items. That was down 0.9 percent from the city’s record high of 13 percent reported earlier this year.
It is believed that inflation is hitting the area the hardest because Phoenix is also one of the fastest growing places in the country – meaning that food, gas, and housing supplies cannot keep up.
New data from the Bureau of Labor Statistics shows the cities where inflation has hit the hardest
According to Redfin, the median home price in Phoenix rose nine percent in September compared to the same time last year
According to Redfin, the median home price in Phoenix rose nine percent in September compared to the same time last year.
Jim Rounds, an economist and policy analyst at Rounds Consulting, told 12 News on Arizona’s struggles: ‘These are unusual times and these are unusual circumstances.
‘When the economy is in a mess, and there’s a lot to fix, it takes longer to fix. Arizona and the greater Phoenix area are unique in that we also grow high, and that puts additional strain on it.’
Other cities battling high inflation rates include Atlanta, where prices rose 10.7 percent and Miami where prices rose 10.1 percent.
Overall, the Republican-led states of Georgia and Florida have seen prices rise at a rate of 8.3 percent.
That’s the same number seen in South Carolina, North Carolina, Maryland, Virginia and West Virginia.
Moving west, Texas, Oklahoma, Arkansas and Louisiana, saw slightly higher inflation, with 8.4 percent reported.
In the north, New York, New Jersey, Pennsylvania and Delaware reported a rate of 6.8 percent, below the national average.
The consumer price index rose 7.7 percent in October from a year ago, marking the fourth straight month of declines from the 40-year high of 9.2 percent reached in June.
Core inflation, excluding volatile food and energy prices, dipped to 6.3 percent on an annual basis, after hitting a four-decade high of 6.6 percent in September.
The numbers were all lower than economists had expected and Wall Street reacted positively, with the Dow Jones Industrial Average gaining 750 points, or 2.31 percent, at the open and rising to 33,264.
Annual inflation in the US remained stubbornly high at 7.7 percent last month, but dipped for the fourth straight month.
While mortgage rates have risen and home prices have fallen, the US housing market has cooled significantly since the pandemic boom. October home sales prices haven’t caught up with mortgage rates rising more than 7% for weeks.
Gasoline prices rose again in October, after months of falling from June peaks
‘Today’s CPI reading for October is a good sign for consumers who have struggled in recent months to absorb continued inflation in household budgets,’ said Scott Brave, head of economic analytics at decision intelligence firm Morning Consult.
Wani added that the latest report, along with other recent data, ‘suggests households are receiving a welcome reprieve from last month’s inflation sting.’
The price of used cars, which skyrocketed in price last year as the lack of computer chips sharply reduced the availability of new cars, fell 2.4 percent from September to October.
And energy service prices are down, thanks to a 4.6 percent monthly drop in natural gas utility prices, as natural gas prices ease off their peaks.
However, gasoline prices ticked up 4 percent from September to October, reversing three straight months of monthly decreases.
The dollar fell across the board for the second straight day on Friday, as investors favored riskier currencies following signs of cooling US inflation that boosted the case for the Federal Reserve to ease off its hefty interest rate hikes.
Friday’s dollar weakness was an extension of the move set out after Thursday’s data showed US consumer inflation rose 7.7 percent year-on-year in October, its slowest rate since January and below forecasts for 8 percent.
Against a basket of currencies, the dollar fell about 3.8 percent in two sessions, on pace for its biggest two-day percentage loss since March 2009.
The long rally of the US currency in the last two years has drawn a host of dollar bulls leading to crowded positioning and Thursday’s data left many of them looking for a quick way out, said strategists.
‘It’s not just short-term trend followers, momentum players should exit positions, but some long-term structural dollar positions should be eliminated,’ said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
The dollar was 1.7 percent lower against the Japanese yen at 138.55 yen while the euro advanced 1.46 percent against the US unit to $1,036.
Fed Chair Jerome Powell is seen high. Many economists warn that in continuing to aggressively tighten credit, the Fed is likely to cause a recession by next year.
‘The dollar is one of the extreme markets in its overvaluation – there is a strong chance we have seen the peak,’ Jim Cielinski, global head of fixed income at Janus Henderson Investors told the Reuters Global Markets Forum on Friday.
Still, some strategists warn that the bear dollar remains vulnerable to the possibility of a near-term rebound.
‘Yes, more people believe that the dollar has risen but the movement has been so sharp that I warn people against chasing it,’ said Chandler Bannockburn.
The dollar found little support from survey data on Friday that showed US consumer sentiment fell in November, dragged down by persistent worries about inflation and higher borrowing costs.
The Australian dollar and New Zealand sensitive risk advanced 1.4 percent and 1.6 percent respectively against the greenback.
Investors’ risk appetite got an extra boost from Chinese health authorities easing some of the country’s strict COVID-19 restrictions, including shortening quarantine periods for close contacts of cases and incoming travelers.
Sterling, meanwhile, rose 1.22 percent against the dollar to $1.1853 after UK data showed the economy did not touch as much as expected in the three months to September, despite still entering what is likely to be a lengthy recession.
The dollar was 2.4 percent lower against the Swiss franc at 0.94025 francs after the Chairman of the Swiss National Bank Thomas Jordan said on Friday the bank was prepared to take ‘all necessary measures’ to bring inflation back down to its target range of 0-2%.
Cryptocurrencies remain under pressure from the ongoing turmoil in the crypto world after FTX’s fall exchange. FTX’s original token, FTT, was last down 26.7 percent at $2,731, taking its month-to-date loss to nearly 90 percent.
Bitcoin fell 4.6 percent to $16,747.