ATLANTA — Feel like you’re paying way more for things? It’s because you are, and now we’ve learned Atlanta is near top of the list for major cities seeing the most inflation.
According to the Bureau of Labor Statistics, Atlanta came in at No. 2 for rate of inflation, only behind Phoenix.
The overall inflation rate for the US is 8.3%, which is close to a 40-year high.
In April, Atlanta went up to 10.8%, just slightly behind Phoenix at 11%.
Bloomberg says there are several factors contributing to this.
“Housing accounts for almost a third of the consumer price index, and soaring rents and home prices are behind much of the inflation across the South and Southwest,” it said. “The Bureau of Labor Statistics’ broad housing category emerged by 14.1% in Phoenix, more than double the 6.5% national average, while it rose by 9.3% in Atlanta. Those two cities are among the top 10 US migration destinations, according to real estate marketplace Redfin Corp,” Bloomberg reported this week.
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These latest stats come as inflation slowed for the first time in months.
Food costs rose 1.5% just in April from March, while shipping and warehousing prices leapt 3.6%. New car prices rose 0.8%. Prices for airline tickets jumped by the most on record since 1963. And food prices continued to rise sharply.
The Federal Reserve has stepped up its fight against rampant price increases, lifting its benchmark short-term interest rate by a half-point last week to a range of 0.75% and 1%. That increase is double its usual quarter-point hike.
Fed Chair Jerome Powell also signaled the Fed will likely hike rates by a half-point in June and July. Several Fed officials have said they would like to get its benchmark rate to roughly 2.5% by the end of this year, which would constitute the fastest pace of hikes in 33 years.
The prospect of higher interest rates and the potential that they could push the economy into recession has badly rattled financial markets this month.
Bloomberg and the The Associated Press contributed to this article.
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