Chicago ranks fourth among major cities with the biggest inflation problem – Illinois

(The Center Square) – The Chicago metropolitan area has one of the worst inflation problems in the United States, according to a new study.

WalletHub found that Chicago is only behind New York, Minneapolis and Detroit on the inflation list. WalletHub writer and analyst Chip Lupo says these markets could be affected by several factors.

“Supply chain disruptions, energy prices and labor market problems can be anything from wage increases to increased production, which is always a key factor in high consumer prices,” Lupo said.

Gladys Tanchez, Republican committeewoman for the 35th District, said the situation in Chicago has worsened.

“Five years ago, everything was great, I think. And what was great was that gasoline was much cheaper every day,” Tanchez said.

Tanchez said prices have skyrocketed over the past three and a half years and surcharges are being added to bills.

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

WalletHub measured 23 metropolitan areas and considered two important metrics related to the consumer price index.

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

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

According to Tanchez, government spending and taxes do not only influence inflation.

“Part of it? That's the problem. When has the government ever done anything that doesn't burden taxpayers,” Tanchez said.

The WalletHub report found that the change in the consumer price index (CPI) in the Chicago area was +3.7% a year ago.

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