Inflation Skyrockets in Atlanta
- Inflation happens when the price level of goods, products, and services go up over time.
- To understand inflation, it’s equally important to know about price levels which is the average of the current price of everything sold in our economy over time.
- Atlanta has seen the highest inflation rates on goods and services, increasing around 9.8 percent since 2021.
Last year inflation took a giant leap as consumer prices rose in many prominent United States metropolitan areas. Cities such as Atlanta, Phoenix, and Tampa had doubled the inflation rates of high-priced cities like San Francisco and New York. However, Atlanta has seen the highest inflation rates on goods and services, increasing around 9.8 percent since 2021.
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Although Atlanta has a robust economy, the inflation rate in metro Atlanta, Georgia, including surrounding cities like Roswell and Sandy Springs, is steadily rising. According to the Bureau of Labor Statistics, the inflation rate in Atlanta has outpaced the national average rising to about 9.8 percent from January to December 2021.
Factors That Contribute to a City’s Economic Growth
Few economic indicators will let someone know if a city has a strong economy and grows steadily. Economic indicators include population growth, wage growth, job growth, and median household income.
Another factor to consider from a travel and tourism perspective is if a city receives frequent tourists throughout the year. For example, Atlanta is consistently ranked high on travel and tourism lists, which attracts people from all over the globe to come to the city and spend money. However, when tourists come to the town and spend excessive money, this increases the prices for food, housing, and transportation.
What’s Causing Inflation?
High Wage Growth
Due to the pandemic, the labor market has become tighter, meaning more employers are eager to hire employees, increasing wage growth. The increase in wages also means that workers have more money to spend to assist with the stimulation of the economy. As a result, consumer power increases and drives up the price level for several goods, products, and services.
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Since thousands of people move to Atlanta each year, the vacancy rate is low, increasing the price for those looking to buy and rent. As a result, the demand for housing in Atlanta is exceptionally high, increasing the cost of accommodation. Even renters are starting to see an increase in their rent, including an uptick of anywhere from 18 to 40 percent. As a result, the cost of living is rising in Atlanta.
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Combating Inflation in Small Ways
The average citizen can’t control the inflation rates within a city’s economy, making buying everyday items more difficult. Therefore, it is essential to combat inflation in small, meaningful, and affordable ways. Here are a few ways that you can fight inflation.
Stay Healthy Without Breaking The Bank
A healthy lifestyle and diet are vital because it allows you to mentally and physically complete your everyday tasks with vigor. According to the U.S. Department of Agriculture, the consumer price index for food bought at the grocery store has increased 1.2 percent from December 2021 to January 2022 and was 7.4 percent higher than January 2021. This means that the food you bought last year has a significant price increase.
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To avoid paying more for the foods you have always bought, try adjusting your mindset to buying and incorporating plant-based foods into your diet. Studies show that people who consume a meatless diet spend an average of $23 less on food every week. Additionally, plant-based foods such as beans, legumes, and veggies, are an excellent source of vitamins and protein while saving you money in the long run.
Rethink Your Housing Plans
Housing has become increasingly expensive. Whether you are looking to buy a house or rent an apartment, the real estate market isn’t showing favorable results for people looking for cheap rent or mortgage. According to Realtor.com, the year-over-year rent prices have significantly increased in the Atlanta-Sandy Springs-Roswell, Georgia, area.
A few alternatives can help renters and homeowners combat the rise of inflation due to renting and mortgage payments. Those alternatives include house hacking, living with a trusted family member or friend, or moving to a different city with lower rent and mortgage prices.
If you have been struck by inflation, it’s essential to try your best to shift your mindset to save money in certain areas to outpace inflation.
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