Recently released federal statistics show that the San Diego Metropolitan Area had a higher inflation rate than the national average and most cities in the first six months of 2019.
According to the U.S. Bureau of Labor Statistics Consumer Price Index, San Diego’s inflation rate was 2.8 percent from January to June, compared to the national average of 1.7 percent.
San Diego Metro has the third-highest inflation rates among the 22 U.S. cities studied by the Bureau. San Francisco Metro had the highest with 3.7 percent, with the Los Angeles Metro following closely behind with a rate of three percent. Detroit and St. Louis had the lowest rates at 0.8 percent.
Rising housing costs and gas prices are primarily to blame for the rising rates in San Diego. Housing costs are up 3.9 percent, rent is up 4 percent, and gasoline prices are up 2.8 percent. Furthermore, medical costs, the price to eat out, and food costs are all up so far this year.
Inflation can be hard on consumers whose income may not increase with the rate of inflation. These numbers show us how many external factors like taxes, regulations, and tariffs are being pushed onto consumers.
“It shows us how expensive it is, relative to 12 to six months, to how wages are keeping pace,” explained Lynn Reaser, chief economist for the Fermanian Business & Economic Institute at Point Loma Nazarene University. “The reason these indices are published are to narrow the lens down so we understand better what is actually happening in San Diego.”
