Seattle and Dallas tied for the highest inflation rates in the country at 5.8%. Detroit rated the lowest of all cities studied, but that’s hardly a silver lining as its unemployment rate stands at 8%.
If you live in Seattle, it might be time to ask for a cost-of-living increase. The city has the highest inflation rate in the country.
“Seattle household income is fairly high, and that helps to maintain a high rate of inflation since higher income areas can afford price increases,” says Steve Cochrane, an economist with Moody’s Economy.com. “Some of it is fuel, but housing prices have also been more stable than anywhere else on the West Coast, which adds to inflation.”
Normally, Seattle’s 3.7% unemployment rate, well under the national average of 5.5%, would be a good thing. But a growing economy with low unemployment drives up wages and costs. The Emerald City’s consumer prices are up 5.8% from this time last year, which ties for the highest inflation rate in the country with Dallas, where high energy costs for home cooling and driving are eating up incomes.
Other hard-hit cities include Los Angeles, Phoenix, Ariz., and Milwaukee. [read the full article here]