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South Florida’s Real Inflation Rate
Bottom Line: If the cost of living in South Florida seems even more expensive than the 8.6% national average. It’s not your imagination. You’re right – it is. Lucky us, right? When digging deeper into the Bureau of Labor Statistics inflation information we’re able to see what’s happening specifically in South Florida – with one caveat. The local data is always a month behind the overall reporting. This means that the updated local information is actually from April when national inflation paced a lower rate of 8.3%. So, what did the survey say? The cost of life in South Florida was 9.6% more expensive year-over-year. And what’s been driving South Florida’s inflation higher than even the 41-year high nationally? The top categories for inflation increases were...
- Energy: 42%
- Transportation: 20%
- Home maintenance: 14%
- Housing 11%
Now if the rising costs of life make you want to drink – you're in luck there. One of one two categories to drop in price over a year ago in South Florida... Booze. Alcohol is just over 1% cheaper than last year. The other, and perhaps healthier consumable, fruits and vegetables which are about 9% cheaper. So, cheers to a fruit cocktail, bloody Mary, or something like that. The potentially better news looking forward is that new and used car prices seem to have started moderating of late, ditto the housing market. Also, for the first time in a long time, South Florida’s rent rates – rose more slowly than home prices. So, there could be a bit of relief in a couple of key areas going forward. At the same time, in real-time, we know there’s been no relief in the cost of energy. Though that’s very much a misery loves company story that’s far from unique to South Florida.