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Report: Florida second-most impacted by inflation

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Florida residents are experiencing the second-highest impact from inflation, according to a new report.

Merchant Maverick ranked Florida as having the second-highest impact, behind only Louisiana, based on a score that included rankings of consumer price index change, regional price parity, state sales tax rate and median household income.

"Florida’s high cost of living relative to other states (regional price parity ranks 36th nationwide, which means it’s higher than that of 35 other states), substantial sales tax (7.01%, 28th nationwide or higher than 27 other states), and low median income ($58,368, putting it in the poorest 10 states) all have the Sunshine State reeling from inflation," analyst Chris Motola wrote.

Motola wrote than many states in the South and Southeast are victims of their own success and have seen an influx of residents, which can lead to inflation.

"Merchant Maverick’s inaugural report, The 10 U.S. States Where Inflation Is Hitting Consumers The Hardest, looks not only at where inflation is rising the fastest, but how much-existing factors within a given state may contribute to the stress on a household budget.

The South is likely a victim of its own success, with key metropolitan areas like Atlanta, Austin, and Tampa absorbing an influx of new residents, predominantly from the Northeast and West Coast. This has generated enhanced demand, particularly for housing, within the region, and has helped to boost prices beyond the national average. This may be particularly hard on existing regional residents, especially in hot markets like Florida, who tend to have lower household incomes than the new arrivals."

Earlier this year, moving company U-Haul named Florida as one of the largest states for growth based upon their moving index. Florida was second, behind only Texas.

"Inflation is a problem everywhere, but the price of necessary staples has risen faster in the Southern region of the country," Motola wrote. "In particular, Southern states with high sales tax and low median household income may be feeling the biggest squeeze."

Residents of South Florida cities particularly have been hit hard.

"South Florida has been especially hard-hit by inflation and particularly housing and gas prices, with cities like Tampa and Miami experiencing drastically higher prices this year over last," Motola wrote.

Inflation, The Center Square, Florida, Southeast

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