The nation’s annual inflation rate fell to 2.5% in August, which is the lowest it has been in three years. The report increases the likelihood that the Federal Reserve will cut interest rates when it meets next week.
On the heels of the new data, WalletHub has released an update on Changes in Inflation by City. The credit website compared 23 major Metropolitan Statistical Areas (MSAs) to determine which ones are experiencing the steepest fall in prices, and which ones continue to experience rising sticker shock.
“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,” according to the website.
These are the 10 MSAs with the best inflationary environments, according to WalletHub:
Anchorage, AK
Phoenix-Mesa-Scottsdale, AZ
Riverside-San Bernardino-Ontario, CA
Atlanta-Sandy Springs-Roswell, GA
San Francisco-Oakland-Hayward, CA
Houston-The Woodlands-Sugar Land, TX
Boston-Cambridge-Newton, MA-NH
Denver-Aurora-Lakewood, CO
Miami-Fort Lauderdale-West Palm Beach, FL
Dallas-Fort Worth-Arlington, TX
These are the MSAs still struggling the most with inflation challenges:
Minneapolis-St.Paul-Bloomington, MN-WI
Chicago-Naperville-Elgin, IL-IN-WI
Detroit-Warren-Dearborn, MI
Urban Honolulu, HI
New York-Newark-Jersey City, NY-NJ-PA
San Diego-Carlsbad, CA
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Washington-Arlington-Alexandria, DC-VA-MD-WV
Baltimore-Columbia-Towson, MD
St. Louis, MO-IL
See full rankings and methodology here.