Recently, the U.S. Labor Department reported my home state, Florida, has the HIGHEST inflation rates in the country. While I am not surprised, I was curious about why this was happening. This is what I discovered…
WHY Florida Inflation is 2X the National Average
According to the stats rolling in, the Miami, Fort Lauderdale, and West Palm area of Florida has an inflation rate of 9%.
That is DOUBLE the Consumer Price Index’s national average of 4%.
THAT MEANS FLORIDA HAS THE HIGHEST INFLATION RATE IN THE ENTIRE UNITED STATES.
Also, the St. Petersburg-Clearwater district of the Sunshine State has an impressive 7.3% rate — which makes it the country’s third highest.
At a glance, the main reason behind this insane inflation is that more people are moving to Florida.
And, people continue to move here for its:
- Good weather
- Great tax rates
- Strong economy
For that reason, there is a shortage of rental properties and housing costs are going up. Those factors alone make everything more expensive.
However, this trend isn’t exactly new. I shared the ridiculous cost of purchasing and renovating my Florida home two years ago…
But what — if anything — can be done to change it?
Is there Relief in Sight for the Sunshine State?
At the end of the day, I don’t see the growth of this state’s population slowing down any time soon…
On the other hand, the way inflation is measured is coming into question — which may be good news for Florida.
The cost of shelter is a MAJOR factor in how inflation rates are calculated. So much so, some economists are questioning whether this is an accurate system.
Economics professor, Tyler Schipper, talked about the inflation incongruencies in the Twin Cities:
“Because the CPI is so weighted toward housing, our overall numbers still looked really good, but those food prices went higher and stayed higher relative to other metro areas. You’re going to have a hard time convincing people that inflation is getting better if their grocery store prices are still going up.”
With this in mind, inflation in Florida may not be as bad as it appears. At any rate, the great people and business-friendly climate will keep me here to weather the storm.
Be Great,
Grant Cardone
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