The Midwest and South are leading the surge in inflation nationally. While US CPI inflation averaged 6.7% y/y in Q4 2021, regional prices were up 7.2% y/y and 7.1% y/y in the Midwest and the South, respectively, and a slightly cooler 6.5% y/y in the West and tamer 5.8% y/y in the Northeast.
What you will learn:
- Reduced economic slack and tight labor markets – driven by strong demand and limited supply – are elevating inflation readings.
- Energy and food inflation are most pronounced in the Midwest and South. But core inflation in the regions have also mildly outpaced the West and Northeast, mainly because goods prices have risen more rapidly.
- Core goods inflation in Q4 2021 ran strongest in the South (+10% y/y) and the Midwest (+9.3% y/y), at the forefront of the national 9.5% y/y increase.