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Inflation slow to ease in South Florida while other parts of US see some relief

High housing costs contributing to issue, economist says
Posted at 6:25 PM, Feb 17, 2023

WEST PALM BEACH, Fla. — As inflation begins to show signs of slowing down in America, it doesn't appear to be subsiding in South Florida, according to new data from the U.S. Bureau of Labor Statistics.

The Consumer Price Index from December 2021 to December 2022 showed a 6.4% hike nationwide, while the number stood at 9.9% for Palm Beach, Boward and Miami-Dade metro areas.

"The reason we have an elevated rate of inflation in South Florida relative to the national average is summed up in one word, shelter," Greg McBride, chief economist at Bankrate.com, said.

RELATED: New inflation report reveals a 26% increase in gas, airfare prices

Greg McBride outlines why inflation doesn't appear to be abating in South Florida compared to other parts of the U.S.
Greg McBride outlines why inflation doesn't appear to be abating in South Florida compared to other parts of the U.S.

Housing is just one of several components of the Consumer Price Index, which also includes the cost of things like food, clothing and energy.

According to the data, the food index for South Florida rose 8.8% in the 12 months ending in December 2022, and energy increased 5.2% in the same period.

But housing costs in this part of Florida easily outpaced other sectors and other parts of the country.

"Nationally, shelter costs were up about 7.5% in 2022," McBride said. "Here in South Florida, they were up 17%, a full 10 percentage points."

Economists expect housing prices and rents to ease later this year in South Florida, which McBride said could go a long way to helping slow down inflation in the Sunshine State.