The Consumer Price Index surged 7.5 percent in January year-over-year. That’s the fastest rate increase seen since way back in February of 1982.

However, new data show that rising inflation isn’t spread out evenly across the United States.

Citing a new report from real estate brokerage Redfin, CBS46 in Atlanta, Georgia, noted that Atlanta, Tampa, and Phoenix ranked toward the top of the list among cities with the highest inflation rates.

“The cities had double the inflation rates of places like New York and San Francisco, two cities many people are leaving from,” the news outlet reported.

“Prices in Atlanta have increased by 8.9 percent, compared to this time last year. … Phoenix saw an increase in both inflation and migration during the fourth quarter of 2021, with prices increasing 8.4 percent. Meanwhile, San Francisco and New York saw more people leave, but had lower inflation rates at 4.6 percent and 4 percent, respectively,” it continued.

Rising Vehicle and Gas Prices

Redfin also said that gas prices in Phoenix surged 67.2 percent year-over-year and prices of cars and trucks were up 34.4 percent. Prices also climbed in the Los Angeles metro—the number one origin for people moving to Phoenix—but they weren’t as pronounced. Gas prices there were up 46.5 percent and cars and trucks 13.7 percent.

“Migration is one reason among many why the cost of everything from food to fuel is rising,” Redfin deputy chief economist Taylor Marr said in a statement. “An influx of people moving to a popular, relatively affordable place like Atlanta increases demand for housing and transportation, pushing up prices on those things and contributing to soaring prices on everything else, from food to utility bills.”

“A person moving from New York City to Atlanta will probably enjoy lower housing costs in their new hometown. That means they’re able to spend more on other things, which in turn means local businesses can charge higher prices,” he continued.

Trend Will Eventually Change

However, the financial advantage of living in cities like Phoenix and Atlanta will eventually fade.

“Over time, higher inflation in Phoenix than Los Angeles, for example, will diminish the financial advantage of living in Phoenix,” Marr said. “The flow of people moving from traditionally expensive cities to more affordable areas will slow down because, quite simply, prices are rising so fast that those places won’t be as affordable anymore.”

In addition, home prices are climbing quickly in the most popular migration destinations. For example, Atlanta home prices were up 22.8 percent year-over-year compared to a 10.3 percent increase seen in San Francisco.

“Movers are feeling a big pinch,” Daryl Fairweather, Redfin’s chief economist, said in a statement. “There is nowhere for them to run from increasing housing costs now that mortgage rates are rising and inflation has spread to the rental market.” 

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.