Tyler Schipper, economics professor at the University of St. Thomas College of Arts and Sciences, recently spoke with CNN about why the metro area of Minneapolis and St. Paul currently has nation’s lowest inflation rate.
From the story:
“Shelter costs grew faster in Minneapolis and peaked a little bit earlier,” said Tyler Schipper, associate professor of economics at the University of St. Thomas in Minneapolis. “They peaked about six months before they did on average of the rest of the country.”
Also likely playing a role is how the Bureau of Labor Statistics tabulates shelter costs within the CPI and the timing of when readings are collected for various regions. ...
Even though the Twin Cities’ inflation rate is currently the lowest among major cities, it might not feel that way to residents, Schipper said.
“Because the CPI is so weighted toward housing, our overall numbers still looked really good, but those food prices went higher and stayed higher relative to other metro areas,” he said. “You’re going to have a hard time convincing people that inflation is getting better if their grocery store prices are still going up.”
