Inflation Rates Ease in Election Battlegrounds، With Atlanta Now at 1.7%

Inflation rates fell under 2% in Atlanta for the first time in almost four years and dropped significantly across the South، providing some relief to consumers — and potential voters — in regions that will be key to the outcome of the US presidential election.

Consumer prices rose 1.7% in Atlanta last month from a year earlier، below the Federal Reserve’s 2% target and well below the national average of 2.5%، according to Bureau of Labor Statistics data released Wednesday. Residents in the Georgia capital، which two years ago was an inflation hotspot، saw more moderate growth in housing costs and cheaper gas prices.

Hotbed of inflation

Phoenix، another former hotbed of inflation in swing state Arizona، has seen a significant cooldown in inflation this year، and posted a below-average rate of 2.3% in August. In the South، a region that includes North Carolina — also a swing state in the election — the rate dropped to 2.3% thanks to a decline in transportation costs and easing in housing price increases.

Lower inflation doesn’t equate to lower prices، and consumers still face higher costs of living compared with the pre-Covid era، especially rents. But the cooldown in price pressures could help Vice President Kamala Harris، the Democrat candidate، who’s been trying to distance herself from President Joe Biden and the blame for inflation that reached a 40-year high of 9.1% in June 2022.

Her opponent، former President Donald Trump، has been attacking the Biden administration — and Harris — for high prices that make Americans feel worse off than when he was leading the country.

The sun belt

Since she joined the race، Harris has especially improved Democrats’ standing in the Sun Belt. Other metros in that region، including Houston and Miami، now have inflation rates well below 3%.

Inflation in the so-called blue wall swing states، however، is proving sticky، driven in part by higher prices for housing and clothes. In Detroit، in the battleground state of Michigan، the annual rate of inflation increased slightly to 3.5% in August. And in the Philadelphia metro، the biggest city in Pennsylvania، the rate stood above the national average، at 3.4%، boosted by higher prices for shelter and other goods and services.

The federal government tracks consumer prices by regions، not individual states. The BLS also provides data on 23 metro areas، with New York، Los Angeles and Chicago reporting inflation every month and the other cities doing so every second month.