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Inflation rose the highest in these Southern California metro areas
Using the latest data from the U.S. Bureau of Labor Statistics, a new study has found how inflation impacts people in different parts of California.
In its latest report, the federal agency put the year-over-year headline inflation rate at 2.7% as of June 2025, which is the highest since February, and up from 2.4% in May.
Various factors, such as the war in Ukraine, labor shortages, and recent tariffs, drive this higher-than-average inflation, according to WalletHub.
Despite the country not meeting its target yet, the Federal Reserve will keep interest rates at the level set in December 2024, the study authors say.
Inflation rates increased year-over-year in Southern California
It may come as no surprise to California residents that where you live is a major factor in how much you fork out for everyday goods and services.
In the latest WalletHub study, they compared 23 major MSAs (Metropolitan Statistical Areas) across two key metrics related to the Consumer Price Index (CPI), which measures inflation.
They looked at the CPI for the latest month for which BLS data is available, two months prior, and one year before get a snapshot of how inflation has changed in the short and long term.
In California, the study found that the amount consumers spend on daily necessities like food and medical care has risen the highest over the last year in three major metro areas in the southern part of the state.
In the San Diego and Carlsbad region, the CPI rose by 3.8%, making it 19 times higher than the increase in CPI (0.2%) in Phoenix, Arizona, the lowest in the study.
While the CPI rose by 3.2% year-over-year in the Los Angeles/Long Beach and Anaheim metro area, per the WalletHub study, it appears prices have remained relatively steady over the last few months, increasing by just 0.1%.
In the Riverside, San Bernardino, and Ontario metro areas, prices rose by 2.6% year-over-year and 0.7% in recent months.
Meanwhile, in San Francisco, the CPI changed the least of all California metro areas in the study. Over the last year, the prices increased by 1.5% and 0.2% in recent months.
This article originally appeared on Palm Springs Desert Sun: New study looks at how inflation differs in these California cities
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