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WalletHub found that the Windy City’s Consumer Price Index
metrics changed 4.3% over the last year. The updated inflation
numbers landed the Chicago metropolitan area at the top of the
report’s rankings for cities with the biggest inflation problem.
WalletHub writer Chip Lupo said the effects are felt outside of
Chicago area.
“Unfortunately, in the state of Illinois, pretty much how
Chicago goes, the rest of the state goes. If there are signs of
economic strife in Chicago, it’s going to trickle down in a bad
way to the rest of the state,” Lupo told The Center Square.
Lupo said state and city budget deficits affect the economic
landscape. He also cited regulations of building permits and
startup businesses.
“Some key drivers that are plaguing Chicago are, of course, the
region’s rising cost of living, which was already high to begin
with, and that includes things such as higher housing and
transportation expenses,” Lupo said.
Lupo added that Chicago’s poor job market conditions, consumer
spending patterns and higher business costs have also driven
prices up.
The WalletHub report said Chicago’s inflation metrics were more
than four times greater than the numbers for Houston, Texas,
which had the smallest inflation problem of the 23 metropolitan
areas surveyed.
“Houston, being in Texas, there’s no state income tax. It’s a
very business-friendly state. Housing in the greater Houston
metro area is high, but it’s considerably lower than you would
find in the Chicago area,” Lupo explained.
“Texas has got a lot going for it,” he continued.
“You’re going to see a steady stream of folks fleeing Chicago,
Illinois, not just for states like Texas, but states like
Tennessee and Florida that have no state income taxes and have
more business-friendly climates,” Lupo said.
Using the December 2024 Consumer Price Index data release by the
Bureau of Labor Statistics, the Joint Economic Committee (JEC)
State Inflation Tracker estimates that the average household in
Illinois is paying $1,149 more per month to purchase the same
basket of goods and services as in January 2021. Cumulatively,
the average Illinois household has spent $35,255 more due to
inflation since January 2021. |
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