10 U.S. cities with the worst inflation in 2025

After peaking at a 40-year high, U.S. inflation has cooled but remains stubbornly above target — sitting at 3% as of September 2025, compared with the Federal Reserve’s goal of 2%. Rate hikes have slowed price growth nationally, but the latest WalletHub analysis finds that local inflation pressures vary sharply from city to city.

To compare conditions across the country, WalletHub analyzed 23 major metropolitan statistical areas (MSAs) using Bureau of Labor Statistics data, tracking short-term (two-month) and long-term (year-over-year) Consumer Price Index (CPI) changes.

Experts cited factors including ongoing labor shortages, global conflicts and tariff effects as drivers behind persistent inflation.

WalletHub compared 23 major MSAs using Bureau of Labor Statistics data on two weighted CPI metrics:

• Change vs. two months prior (50%)
• Change vs. one year prior (50%)

For physicians and practice owners, local inflation trends can translate directly into operational pressure — from rising supply and rent costs to wage competition. Markets where inflation remains elevated, like Denver and Los Angeles, may continue to see higher overhead and slower reimbursement growth.

Understanding these regional dynamics can help practices anticipate cost shifts and adjust budgets before they hit the bottom line.