Midwest Inflation Rate rose 2.9 percent since July 2022

Inflation rates have come out for July, and the national inflation rate has risen 3.2 percent from July of last year. However, The Kansas Constitutional focuses on issues regarding Kansas specifically, so we are looking at how high inflation has risen in our region, specifically. The Midwest Region is made up of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Together, these states are experiencing a lower inflation than the country as a whole, with an inflation rate of 2.9 percent. The inflation we are experiencing is not as bad as the South and West Regions, which are experiencing an inflation rate of 3.4 percent and 3.5 percent respectively. The Northeast Region is experiencing a lower inflation rate at 2.6 percent. The Midwest inflation rate has risen 0.3 percent from June 2023 to July 2023.

Inflation is a stealth tax, meaning it is a tax that is levied in a way that is supposed to go unnoticed as a tax. Inflation occurs for many different reasons, the main one being reckless government spending. It is also important to note that inflation is a degradation of the value of the dollar. This means an item that cost $100.00 last July now costs $102.90 this July, for those living in the Midwest Region.

When it comes to ‘food and beverages,’ the Midwest is experiencing an inflation rate of 5.1 percent. The main drivers behind this inflation at ‘cereals and bakery products’ (7.3 percent), and ‘food away from home’—restaurant, cafeteria, and vending purchases—(7.1 percent). Looking at the extent of one month, ‘alcoholic beverages’ were the only subcategory to experience a deflation from June 2023 to July 2023 of 0.2 percent. ‘Dairy and related products’ were the only subcategory to not experience a percentage change from June 2023 to July 2023.

A 5.6 percent inflation rate has occurred for ‘housing’ in the Midwest Region from July 2022. ‘Shelter’ was the biggest driver of this with an 8.1 percent inflation rate. ‘Fuels and utilities’ is a ‘housing’ subcategory experiencing a deflation of 5.2 percent. It has a subcategory called ‘utility (piped) gas service’ which has a deflation rate of 25.6 percent.

Deflation is occurring for ‘transportation,’ having decreased 2.4 percent from July of last year. Motor fuel has been the main cause of this deflation as it has decreased 23.3 percent from July of last year.

For a fuller picture of the Midwest Region inflation rate, click here.