Inflation Soars In New York City As Rental Costs Skyrocket

Inflation is on the rise around the country, as the Consumer Price Index edged up half a percent in July, the biggest gain in three months.

Here in New York City, the CPI rose even more, nine tenths of a percent. The surge was largely due to soaring prices at the pump, as well as sky-high real estate prices, particularly rent. The Bureau of Labor Statistics said residential rents in New York City increased more than six percent this past year, and are now at their highest level since it started keeping records in 1914.

The BLS cited supply and demand factors, considering there is a new graduating class moving to the city looking for apartments. Also, landlords are passing on increased fuel and energy costs to renters and federal subsidy programs have been eliminated from a number of apartments.