Tennessee Feels Third-Highest Impacts Nationally From Inflation
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The Center Square [By Jon Styf] –
Tennessee had the third-highest impacts from inflation, according to a new report.
Merchant Maverick ranked Tennessee as having the third highest impact, behind Louisiana and Florida, based on a score that included rankings of consumer price index change, regional price parity, state sales tax rate and median household income.
“At 9.55%, Tennessee has the highest sales tax in the country (tied with Louisiana), coupled with one of the lowest median incomes ($56,627, 43rd in the US),” analyst Chris Motola wrote. “With costs spiking in every category, from food and beverage to recreation, household budgets in the Volunteer State are getting squeezed from all angles.”
Motola wrote than many states in the South and Southeast are victims of their own success and have seen an influx of residents, which can lead to inflation.
Earlier this year, moving companies U-Haul and United Van Lines named Tennessee as one of the largest states for growth based upon their moving indexes. Tennessee was third, behind Texas and Florida, in the U-Haul numbers and was ranked seventh by United Van Lines.
“Inflation is a problem everywhere, but the price of necessary staples has risen faster in the Southern region of the country,” Motola wrote. “In particular, Southern states with high sales tax and low median household income may be feeling the biggest squeeze.”
Tennessee ranked 49th in sales tax, 43rd in median household income, 35th in both housing (7.0%) and apparel (7.0%), 26th in education and communication (1.2%) and 22nd in transportation (20.6%) and medical care (3.6%) when it comes to inflated costs.
Louisiana, which topped the list, has a lower median household income ($51.707), which ranked above only Mississippi in the rankings.
“Housing and utility costs in the desirable Nashville region have been particularly impacted by inflationary pressures, which have only intensified the general upward trend of housing in the region over the past decade,” Motola wrote.
He cited a Wall Street Journal report that said housing prices in Nashville have nearly doubled over the past 10 years as the city’s population boomed with 400,000 new residents.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
