econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 23 November 2017

Purchasing Power Across The U.S.

from the Philadelphia Fed

-- this post authored by Elif Sen and Adam Scavette

Where you live can determine how far a dollar goes. But pay varies regionally, too. To get a true picture of an area’s affordability, it helps to understand regional price parities.

It’s common knowledge that the cost of living varies drastically across the United States. Housing prices in the San Jose area are the highest for any metro area in the country, while housing can be had in parts of Alabama for nearly one-tenth that. Of course, wages vary, too. Workers in Silicon Valley earn considerably more than those in the Deep South. But do wage differences offset housing costs? Jobhunters considering moving to another city, even one in the same state, need a way to know what prices are like there and whether their pay will be high enough to maintain their desired standard of living. Economists, too, want to be able to compare certain types of economic data across cities and regions, particularly information on consumer spending - a critical category that accounts for nearly 70 percent of the nation’s output - in a way that controls for different regional price levels. How do we get a sense of how prices in a given city or region compare with prices in another or how fast prices are rising in one place versus the next? By creating a basis for comparing an area’s cost of living, we can construct a standard for comparing how much purchasing power its residents have.

The Bureau of Labor Statistics (BLS) produces the most well-known measure of U.S. prices, the consumer price index (CPI). It tracks how prices change from month to month and year to year for a standard “basket" of consumer goods and services representing major consumption categories such as food, housing, transportation, education, and medical care. Similar price index data are available at the local level, including for 14 major metropolitan statistical areas. Like the nation, these metro areas have experienced overall price growth over time. However, the rate of price increases differs meaningfully from one city to another. While national price inflation averaged 2.2 percent from 1998 through 2015, prices in these 14 metro areas grew at varying rates (Figure 1). The San Francisco and Miami metro areas, for instance, had slightly faster price growth, above 2.5 percent, over those 17 years, while prices in and around Atlanta, Cleveland, Chicago, and Detroit rose less than 2.0 percent a year on average.

[click on image below to continue reading]

Source

https://philadelphiafed.org/-/media/research-and-data/publications/economic-insights/2017/q4/rs_purchasing-power.pdf?la=en

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved