With the year-over-year inflation rate at 2.8% in February, the personal-finance website WalletHub today released its updated report on the Changes in Inflation by City, as well as expert commentary. Happily for local residents, Phoenix is the city with the fifth-lowest inflation problem, according to the analysis.
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The U.S. inflation rate hit a 40-year high after the pandemic but has since cooled significantly due to factors like the Federal Reserve rate hikes. The year-over-year inflation rate sits at 2.8% as of February 2025, which is still above the target rate of 2%. Various factors, such as the war in Ukraine and labor shortages, drive this higher than average inflation. Despite the country not meeting its target yet, the Federal Reserve will keep interest rates at the level set in December 2024.
To determine how inflation is impacting people in different cities, WalletHub compared 23 major MSAs (Metropolitan Statistical Areas) across two key metrics involving 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.
Inflation rates differ across the U.S., though. To determine how inflation is impacting people in different parts of the country, WalletHub compared 23 major MSAs (Metropolitan Statistical Areas) 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.
Inflation Problem in Phoenix (1=Worst, 12=Avg., 23=Best):
- Overall rank: 19th
- 17th – Consumer Price Index Change (Latest month vs 2 months before)
- 22nd – Consumer Price Index Change (Latest month vs 1 year ago)
Main Findings
Cities With the Biggest Inflation Problems
| 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 | San Diego-Carlsbad, CA | 87.50 | 1.60% | 3.80% |
| 2 | Boston-Cambridge-Newton, MA-NH | 85.94 | 1.50% | 3.90% |
| 3 | Riverside-San Bernardino-Ontario, CA | 79.69 | 1.80% | 2.90% |
| 4 | Chicago-Naperville-Elgin, IL-IN-WI | 78.13 | 1.30% | 3.80% |
| 4 | New York-Newark-Jersey City, NY-NJ-PA | 78.13 | 1.10% | 4.20% |
| 6 | San Francisco-Oakland-Hayward, CA | 76.56 | 1.80% | 2.70% |
| 7 | Dallas-Fort Worth-Arlington, TX | 75.00 | 1.70% | 2.80% |
| 7 | Baltimore-Columbia-Towson, MD | 75.00 | 1.50% | 3.20% |
| 9 | Urban Honolulu, HI | 73.44 | 1.00% | 4.10% |
| 10 | Minneapolis-St.Paul-Bloomington, MN-WI | 71.88 | 1.50% | 3.00% |
| 11 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 70.31 | 1.40% | 3.10% |
| 12 | Miami-Fort Lauderdale-West Palm Beach, FL | 67.19 | 1.40% | 2.90% |
| 13 | Los Angeles-Long Beach-Anaheim, CA | 64.06 | 1.20% | 3.10% |
| 14 | Tampa-St. Petersburg-Clearwater, FL | 51.56 | 1.20% | 2.30% |
| 14 | Detroit-Warren-Dearborn, MI | 51.56 | 0.70% | 3.30% |
| 14 | Seattle-Tacoma-Bellevue, WA | 51.56 | 1.10% | 2.50% |
| 17 | Anchorage, AK | 42.19 | 0.60% | 2.90% |
| 18 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 35.94 | 0.50% | 2.70% |
| 19 | Phoenix-Mesa-Scottsdale, AZ | 34.38 | 0.90% | 1.80% |
| 20 | Atlanta-Sandy Springs-Roswell, GA | 32.81 | 0.70% | 2.10% |
| 21 | Houston-The Woodlands-Sugar Land, TX | 25.00 | 1.00% | 1.00% |
| 21 | St. Louis, MO-IL | 25.00 | 0.50% | 2.00% |
| 23 | Denver-Aurora-Lakewood, CO | 20.31 | 0.20% | 2.30% |
