The Metro Areas With The Smallest Inflation Surges So Far In 2025

Inflation has been a thorn in the side of many Americans over the last several years. To make things more complicated, there are numerous causes of inflation, from supply chain disruptions and pent-up consumer demand to newly implemented tariffs. While inflation has cooled since peaking at a 40-year high in 2022, it still remains above the Federal Reserve's target rate of 2% – hitting 3% as of September 2025. However, some metro areas haven't felt the sting of inflation quite as badly as others. According to a study from WalletHub, the metro area that is faring the best in terms of inflation is Texas' Houston-The Woodlands-Sugar Land area.

To determine the areas with the smallest inflation surges, WalletHub looked at short- and long-term inflation rates for 23 Metropolitan Statistical Areas (MSAs) across the country. Based on data from the U.S. Bureau of Labor Statistics (BLS), each area was given a score based on changes in the consumer price index (CPI) over a two-month and one-year period. The areas with the combined lowest scores were experiencing the lowest rates of inflation. For the two months ending in August 2025, inflation in the previously mentioned Texas metro fell by 0.1% — largely due to a drop in the energy index. Meanwhile, for the one-year period, inflation rose just 1.1% — also helped by a decline in energy prices. This low inflation rate in the area should be welcome news to residents as Houston is not only considered one of America's most overpriced cities, but also because, in 2023, the metro area was grappling with the No. 7 highest rate of inflation in the country.

Michigan's Detroit-Warren-Dearborn metropolitan area came in second for having the smallest increase in inflation. Over the two-month period ending in August 2025, inflation in the area edged up just 0.2%. This was in line with the rise of all items costs, excluding food and energy. Both food and energy prices, however, were a bit higher. For the 1-year period, the area's inflation rate increased 0.7% as a large decline in energy offset a hefty increase in food prices. If inflation continues to track lower than other major metropolitan areas, perhaps it will change Detroit's reputation as one of the worst places to retire, due in part to its high cost of living.

Two metro areas tied for third place on WalletHub's list: Florida's Miami-Fort Lauderdale-West Palm Beach and Georgia's Atlanta-Sandy Springs-Roswell. In the Florida area, inflation fell 0.2% over the two-month period. All items, minus food and energy, fell slightly more while energy prices stayed the same and food ticked up. Over the 12-month time frame, prices rose 2.5%. Notably, a slight increase in energy prices helped offset a large rise in the food index. In the Georgia metro, the short-term inflation rate ticked up 0.1% alongside all items less food and energy, while food and energy prices rose — the former more than the latter. During the 12 months, inflation rose 1.7% largely due to a decline in energy prices, which tempered an increase in food prices.