No one likes inflation; but unfortunately, New Yorkers are dealing with the biggest inflation problem for any U.S. city.
The U.S. inflation rate reached a 40-year high following the pandemic; however, it’s at least gone down a little since, now hovering at 2.9% as of December 2024. And though our nation’s inflation rate has improved, New Yorkers should know that they’re dealing with the largest inflation problem in the country, according to a new study from WalletHub.
The nation’s current 2.9% inflation rate is still higher than the target goal of 2%. Labor shortages and the war in Ukraine are just some factors WalletHub believes the U.S. has surpassed this target rate.
But inflation doesn’t just differ by country, but by state and city as well. So to gain further insight, WalletHub analyzed 23 major Metropolitan Statistical Areas against two metrics regarding Consumer Price Index:
- Consumer Price Index Change (Latest month vs 2 months before)
- Consumer Price Index Change (Latest month vs 1 year ago)
Each metric was assigned a weight to land on a total score that demonstrates how inflation has changed, both short and long term, for each area.
NYC leads the list for U.S. cities with the biggest inflation problem, scoring an 85.29. In just one year, NYC has jumped four spots after placing in fifth in 2024. Other high inflation cities for 2025 include Atlanta-Sandy Springs-Roswell, Georgia, Urban Honolulu, Hawaii, St. Louis, Missouri-Illinois, and Los Angeles-Long Beach-Anaheim, California.
So what makes inflation so different across cities? Various economists and experts chalk it up to a medley of reasons. Some note it’s the increase in housing prices, COVID-related disruptions, supply chain shocks, and so on.
You can explore the full study on WalletHub.