Regional inflation cooled off in January, showing the lowest annual price growth in almost a year.
Consumer prices were up 1.9% last month compared to a year earlier across the southeastern U.S. That’s below the national inflation rate of 2.4% recorded in January.
The slower regional inflation was helped by a drop in gasoline prices over the past year while food prices continue to rise at an increased rate thanks to meat and non-alcoholic drinks. Restaurant prices also continue to trend higher. Electricity costs also have risen faster than overall inflation.
The most recent data for Florida is for Tampa, where inflation was 2.3% in January. Data for South Florida will be released next month.
Inflation in Miami was running much hotter than the national figures for several years. It was primarily driven by housing and rental costs. As the annual comparisons became more difficult and the Federal Reserve raised interest rates, which helped slowdown home price increases, regional inflation has slowed.
Inflation is the general increase in prices. If price trends were to turn negative, that would be deflation, which is a much different economic challenge than policies aimed to slow down inflation.
The Federal Reserve lowered its target short-term interest rate three times in 2025 as price trends slowed. South Florida’s inflation rate was 2.6% in the second half of last year, according to data from the Bureau of Labor Statistics. That represents the 6-month lowest inflation rate for the area in five years.
Pump prices have dropped 20 cents a gallon for regular unleaded fuel in Miami, according to AAA. The average is $2.86. Gasoline prices are down 15 cents in Fort Lauderdale in the past year to $2.88 a gallon.
Meantime, the median price of a single family home sold in Miami-Dade and Broward fell slightly in December versus a year earlier. Condo prices have been sliding for more than a year as the market adjusted to higher mortgage rates and regulations put in place after the collapse of the Champlain Towers South condo building in Surfside.
A report in December by rental market data firm Rent Cafe identified Miami has one of the two most competitive markets for renters. That competition has slowed any decreases to lease rates. Realtor.com reported the median asking rent in South Florida in December was over $2,200, a 3.4% decrease from a year earlier.
