The Greater Philadelphia area, concerning Montgomery County, shows the inflation rate from October 2020-2021 was 5.6 percent. Albeit relatively high, the economic indicator shows the region outperforming the nation, whose inflation rate for the same timeframe was 6.2 percent, writes Mike Shields for the Economy League.
The spike in inflation this year is marked by the onslaught from the COVID-19 pandemic’s economic lockdown and current supply chain constraints.
This is not the first time for the region to record such high rates. In October 2004, it reached 5.2 percent, while in June 2008 — just ahead of the Great Recession — it swelled to 5.1 percent.
Among the Consumer Price Index components (food, energy, and housing), the key components driving Greater Philadelphia’s inflation rate are energy and transportation, mirroring national trends.
In some categories, the region has outpaced national inflation rates. Apparel, for example, saw an inflation hike of 5 percent, which is 0.7 percent higher than the national rate.
Meanwhile, the rate for food and beverages was below the national rate (5.1 percent) by 1.5 percent.
October was in line with the previous several months in which Greater Philadelphia exhibited relative economic resilience to inflation compared with national trends.
Read more about the Philadelphia-area inflation hikes in the Economy League.