Chicago ranked fourth among major metros for biggest inflation problem

(The Center Square) – A new study says the Chicago metropolitan area has one of the biggest inflation problems in the United States.

WalletHub found that Chicago trails only New York, Minneapolis and Detroit on the inflation list. WalletHub writer/analyst Chip Lupo says several factors may be affecting those markets.

“Supply chain disruptions, energy prices and labor market issues, which could be anything from increased wages that are pushing up production, which is always a key to contributing to high consumer prices,” Lupo said.

35th Ward Republican Committeewoman Gladys Tanchez said the situation in Chicago has deteriorated.

“Five years ago, I think things were great. And meaning great was gas was so much cheaper, every day going out,” Tanchez said.

Tanchez said prices have skyrocketed in the last 3 1/2 years and surcharges are being added to bills.

Both Lupo and Tanchez cited taxes as a reason for the Chicago area’s ranking. The combined state and local sales tax rate in Chicago is 10.25%.

WalletHub measured 23 metropolitan areas and considered two key metrics involving the Consumer Price Index.

Lupo said taxes and government spending are factors that affect inflation.

“Government spending is at the heart of all inflation. Local policies contribute either positively or negatively, and taxation is one,” Lupo said.

According to Tanchez, government spending and taxes are more than just inflation influencers.

“Part of it? It is the problem. When has government ever done anything that doesn’t affect taxpayers’ pocket,” Tanchez said.

The WalletHub report found that the Chicago area’s CPI change over one year ago was +3.7%.

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