NJ Suffering The Most From Inflation Changes: Analysis

Megan VerHelst
·2 min read

NEW JERSEY — The rising cost of groceries, gas and other household essentials are hitting New Jerseyans harder than residents of any other state, according to a new analysis by WalletHub.

Inflation hit a 40-year high following the COVID-19 pandemic, according to research. While it's cooled significantly due to Federal Reserve interest rate hikes, the national inflation rate was at 2.9 percent in July — well above the 2 percent target.

To determine which parts of the country were struggling the most with inflation, WalletHub compared 23 major metropolitan areas across two key metrics related to the Consumer Price Index, or CPI, which measures inflation. Read more about WalletHub's methodology online.

Researchers discovered that residents of the New York-Newark-Jersey City metropolitan area were suffering the most.

According to WalletHub, the CPI for the area had increased by 0.9 percent in the latest month compared to two months before. Over the last year, the CPI increased by 4.1 percent.

According to the report, the following metropolitan areas were the top 10 for worst inflation:

  1. New York-Newark-Jersey City, NY-NJ-PA

  2. Minneapolis-St.Paul-Bloomington, MN-WI

  3. Detroit-Warren-Dearborn, MI

  4. Chicago-Naperville-Elgin, IL-IN-WI

  5. Urban Honolulu, HI

  6. St. Louis, MO-IL

  7. Seattle-Tacoma-Bellevue, WA

  8. San Diego-Carlsbad, CA

  9. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

  10. Washington-Arlington-Alexandria, DC-VA-MD-WV

Researchers said factors likely driving spikes in inflation include the war in Ukraine and labor shortages. Other experts who spoke with WalletHub attributed the increases to the demand for goods exceeding the supply, as well as excessive government spending, a tight labor market, and corporate greed.

See the full analysis online.

NJ Suffering The Most From Inflation Changes: Analysis originally appeared on the Across New Jersey Patch

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