10 Cities Hardest Hit By Inflation: Did Yours Make the List?
Was your city hit harder by inflation? Here are the 10 cities where residents saw prices rise the highest.
Inflation continues to overstay its welcome. The Consumer Price Index (CPI) report rose to 3.4% in July, representing a slight decrease from June. But it's still up 1% since January and 0.7% since July of last year. The main driver of that inflation is energy. Gas prices have surged nearly 25% over the past year while electricity and gas while fuel oil (which includes the heating oil you might use to heat your home) rose over 39%.
While Americans everywhere are feeling the pinch, some cities are getting hit harder by rising costs. To find out which areas are seeing the worst price increases, I looked at data from the Bureau of Labor Statistics (BLS) for 23 major metropolitan areas over the past 12 months.
For this analysis, I compared the latest CPI in each metro area to what it was six months ago and 12 months ago, looking for areas where inflation had risen more drastically over than the overall Consumer Price Index.
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10 cities inflation changes impacted the most
According to the most recent BLS data on inflation across 23 major metropolitan areas, the impact of inflation is far from even. Some cities are enjoying cooling inflation and others have seen it stagnate. Then there are the cities where it's both higher than the national average and rising at a faster pace than the national average. Here are the seven cities where inflation is higher and rising faster:
Metropolitan Area |
Latest CPI |
CPI Change (since January) |
CPI Change (last 12 months) |
|---|---|---|---|
Urban Hawaii |
5.60% |
3.20% |
3.30% |
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
5.40% |
1.90% |
2.10% |
New York-Newark-Jersey City, NY-NJ-PA |
4.60% |
1.70% |
1.40% |
Seattle-Tacoma-Bellevue, WA |
4.50% |
1.40% |
1.80% |
Washington-Arlington-Alexandria, DC-VA-MD-WV |
4.00% |
1.30% |
2.00% |
Denver-Aurora-Lakewood, CO |
3.90% |
1.30% |
1.80% |
Boston-Cambridge-Newton, MA-NH |
3.70% |
2.30% |
0.50% |
With inflation topping 5% in Hawaii and Philadelphia metro areas, these are definitely the hardest hit consumers in the United States right now. In Hawaii especially, the pace of inflation has been soaring over the last year. While it had been gradually cooling, dipping as low as 2.30% in July 2025, it's current rate of 5.60% is the highest it's been since 2022.
Meanwhile, there are three cities where the current inflation rate is below the 3.40% national average, but the pace of inflation has been rising as fast or faster than the cities above:
Metropolitan Area |
Latest CPI |
CPI Change (since January) |
CPI Change (last 12 months) |
|---|---|---|---|
Detroit-Warren-Dearborn, MI |
2.90% |
1.70% |
2.70% |
Urban Alaska |
3.30% |
1.80% |
1.70% |
Atlanta-Sandy Springs-Roswell, GA |
2.80% |
1.90% |
1.00% |
How to shield against inflation
The CPI report shows inflation is on a continual upswing for some everyday expenses. With this in mind, it means now is the perfect time to plan for rising costs.
One of the best ways to stay ahead of inflation is to store your emergency fund in an account that outpaces inflation. That's where the best high-yield savings accounts come into play.
These accounts feature variable interest rates. While it means the APYs on these might dip some, you can still earn rates above 4%, allowing you a risk-free way to maximize gains.
You can shop and find the best account for you quickly, using the tool below, powered by Bankrate:
A high-yield savings account is only one solution. If you want your earnings to outpace inflation, the best option continues to be investments as, historically, they earn a much higher rate of return.
One of our top online brokers is Fidelity. They offer free advice to newer investors with a portfolio of less than $25,000. If you have a portfolio exceeding this amount, you'll have access to a live agent for a fee of 0.35% of your assets.
With prices rising slightly faster than anticipated, having the right budgeting app can ensure you're maximizing your savings and investment goals, while curtailing spending that isn't helping you reach them.
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