Jun 3, 2024 - News

San Diego inflation is officially tapering off

Line chart showing the change in the Consumer Price Index in the San Diego metro area. In March 2024, the year-over-year change was +20.53% and the cumulative change since January 2021 was +3.58%.
Data: BLS; Chart: Axios Visuals

Inflation in San Diego is slowing, but years of increases have taken a toll.

Why it matters: The official measure of inflation compares prices to their level a year ago, but as Axios' Felix Salmon writes that might not feel as relevant as a rough sense of how much something's cost in the recent past.

State of play: The Bureau of Labor Statistics' official measure of inflation in San Diego peaked at 8.3% in May 2022 and gradually declined to 3.4% in March of this year.

Yes, but: Comparing prices today against the start of 2021 shows a persistent run-up.

  • At the time of that May 2022 peak, cumulative prices around San Diego had increased by 10.5% since the start of 2021.
  • By this March, prices had increased by 20.5% since January 2021 — even though inflation had been officially retreating for nearly two years.

The bottom line: The way economists understand inflation doesn't exactly match the term's common usage.

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