The Riverside area has the fourth-worst inflation rate in the country, trailing only cities like Dallas, Detroit and Honolulu, according to a new report.
In Riverside, Ontario and San Bernardino, inflation is up about 1.4% in the last two months. Further hurting consumers, the price hikes are hitting a city with a 5.5% unemployment rate, which is higher than the national average.
Experts feel this rise is due to rising energy costs and the price of natural gas in the city.
Los Angeles wasn’t far behind, according to the report released by WalletHub that cited the Bureau of Labor Statistics, claiming the No. 9 spot on the list with cities like Miami, San Francisco and Seattle just ahead.
Nationally, inflation held at 3.4% in April, edging closer to the Federal Reserve’s target rate of 2%, though stagflation continues to hamper the economy.
Stagflation is an economic condition characterized by stagnant growth, high unemployment and high inflation. It presents a unique challenge because typical measures to combat inflation, such as raising interest rates, can negatively impact unemployment and growth.
Though many are hoping the economy begins to grow, many consumers are losing faith.
Experts predicted Tuesday that student loan rates will balloon to the highest they’ve ever been, hovering around 6.53% for undergraduate direct loans.
It’s been 16 years since rates have been this high for students, which includes hikes to both graduate and parent loans.
This, coupled with the record-high home loan interest rates, could mean the economy is headed towards recession, with debt fueling the growth for many Americans.
The Fed will look to lower interest rates next month, although many experts believe the rates won’t come down until 2025.