Study says Houston has one of the lowest inflation problems, but do our pockets beg to differ?

Generic photo of man c.a. 1970s holding empty wallet (Photo by H. Armstrong Roberts/ClassicStock/Getty Images) (ClassicStock, H Armstrong Roberts Inc)

HOUSTON – High prices due to inflation seem to have been going on forever and a new study suggests Houston is not experiencing as much of a difference compared to other major metropolitan cities. My wallet and bank statements suggest otherwise.

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The report was conducted by WalletHub, where researchers compared 23 major metropolitan cities.

By examining the Consumer Price Index, which measures inflation, for the latest month, the findings suggest Houston had the fourth-lowest inflation problem.

Now, I’m no economist but something about that just doesn’t seem right. (I’m also not good with money - but that’s neither here, nor there.)

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And experts tell WalletHub I might not be the only one who thinks that either.

“Inflation is coming down but not as fast as one would want,” Professor Kjetil Storesletten at the University of Minnesota said. “Increasing the interest rates and reducing government spending would both contribute to lower expectations of future inflation and, hence, lower the current inflation rate.” Earlier this week, I wrote an article on how much money people in Houston needed to earn to “live comfortably” and there was a gap between how much the median income is and how much was needed to make ends meet.

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Combine that with the fact that Texas’ minimum wage has remained unchanged since 2009 at $7.25 per hour.

It’s difficult then, to see how Houston has a silver lining when it comes to inflation.

And experts like Scott Kolman at San Diego State University tell WalletHub it’s near impossible to see any type of light at the end of this very dark (and very expensive) tunnel.

“High inflation hurts today and the future,” he said. “I have never heard of, or read, anyone putting a positive spin on the future due to the current high inflation. You will hear politicians spinning the current inflation problem as it is a sign of a strong economy.

“This is true of the current situation,” Kolman continued. “However, the economy is overheated because of deficit spending. The cost of inflation caused by deficit spending will be far beyond the dollars we have to pay back and the interest from the extreme borrowing.”

Read the full report by WalletHub by clicking here.

About the Author

Historian, educator, writer, expert on "The Simpsons," amateur photographer, essayist, film & tv reviewer and race/religious identity scholar. Joined KPRC 2 in Spring 2024 but has been featured in various online newspapers and in the Journal of South Texas' Fall 2019 issue.

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