The latest data from the Bureau of Labor Statistics shows that the inflation rate in the New York metropolitan area continues to exceed the national average, driven mainly by rising housing and energy prices.
The Consumer Price Index (CPI) in the New York City area rose by 3.2% compared to the same period last year, surpassing the national increase of 2.7%. In particular, rents in New York and surrounding areas increased by 4.7%, significantly higher than the national average of 3.9%.
The rising cost of housing is a major factor in the persistently high inflation rate in the New York area. While the rate of increase in housing costs has moderated compared to the peak period after the pandemic, it still remains well above pre-pandemic levels.
Energy prices are also a significant factor contributing to inflation in New York. Local energy prices increased by 3.9% over the past year, while the national average declined by 1.6%. Though gasoline prices in the New York area dropped by 11.4%, the increases in natural gas and electricity costs offset and exceeded the impact of falling oil prices.
The increase in education and childcare costs is equally alarming. Tuition and childcare costs in the New York City area rose by 5.9%, far higher than the national average of 3.5%. Additionally, food and grocery prices in New York increased by 3.5%, also surpassing the national average of 2.2%.
However, in some other areas, the cost of living in New York has risen less compared to the national average. For instance, healthcare costs increased by less than 2%, while the national average rose by 3.5%.
According to data from the NYC Economic Development Corporation (EDC), the cumulative inflation rate in New York from before the pandemic until now is 22.5%, slightly lower than the national level of 24%. Among major US cities, New York ranks in the middle range – lower than Miami, Atlanta, and Dallas but higher than Boston, San Francisco, and Houston.
The Office of Management and Budget (OMB) predicts that the inflation rate in New York for the full year of 2025 will reach 3.9%, higher than the national rate of 3.2%; in 2026, it is also projected to surpass the national average at 2.8%.