Inflation in Atlanta Tops Major U.S. Cities With 7.9% Price Hike
(Bloomberg) -- Residents of the Atlanta area are experiencing the worst inflation among major U.S. cities, with October prices up 7.9% from a year ago -- more than double the rate in San Francisco.
By contrast, prices in San Francisco and New York rose 3.8% of 4.3%, respectively.
October inflation data was only available for 14 major cities as of Tuesday, so it’s possible other metropolitan areas saw even higher inflation than Atlanta.
The numbers highlight a pandemic-era divide, with scorching inflation in regions that have attracted people during the Covid-19 crisis and more moderate increases in the East Coast and West Coast cities they fled.
Transportation costs are leading the way in Atlanta, whose residents paid 21% more for expenses including fuel and vehicles than they were a year ago, the data show. Georgia’s capital also saw outsize gains in the price of clothes, up 11%, as well as recreation and housing.
The nation’s soaring prices could pressure the Federal Reserve to raise interest rates sooner than expected, while also putting President Joe Biden’s nearly $2 trillion tax-and-spending package in further jeopardy in Congress.
Democratic Senator Joe Manchin, whose potential vote on the package could be pivotal in a Senate divided 50-50 between Democrats and Republicans, on Wednesday said in a tweet that the “threat posed by record inflation to the American people is not ‘transitory’ and is instead getting worse.”
©2021 Bloomberg L.P.