Recent report ranks San Diego No. 2 in country with highest inflation

A recent data report form the U.S. Bureau of Labor Statistics recently ranked San Diego the No. 2 city in the country with the highest inflation rate.

Philip Watkinson is a husband and father to a family of five, but a provider to a middle-income family of three.

“We’re a sharing family. We like to share our table with everyone, and we have an open house for visitors all the time,” Watkinson said.

However, he said the rising costs on certain food items has made it harder to invite others to their table.

“We find ourselves basically purchasing the absolute essentials during the month to keep us going,” Watkinson said.

It's a reality that rings true for many San Diegan families. Groceries aren’t the only area of Watkinsons' budget affected by the rising costs.

“The mortgage, the space rental, which is another aspect for 55+ communities, has gone up significantly due to the inflation,” he said.

Watkinson said inflation rates have also increased the cost of his home insurance and property taxes. He said keeping the lights on in his home is also adding to the list of rising costs.

Economic experts like Professor Alan Gin with the University of San Diego said housing and electricity prices contributed to the rise in costs.

“Housing prices are up over 10% compared to a year before, and then electricity prices are up 16%. So those were the main contributors to inflation then in San Diego,” Gin said.

So what is driving inflation rates to be higher in San Diego than anywhere else in the country, besides Tampa Bay? Gin said San Diego is a desirable place to live.

“For people then who want to leave the Bay Area or Los Angeles but want to stay in California, San Diego is a location that they're coming to,” Gin said.

He added, however, that he’s optimistic about the future of the economy.

“So there are some forecasts that the economy is going to slow in the next year or so and if that happens, then that will help reduce the pressure then on prices and cause inflation then to ease even more," Gin said. "Certainly now, can we also expect an ease when it comes to food, energy and utilities, as well."

This is news that gives San Diegan families like the Watkinsons great relief as they consider saving for their future.

“You know, you create your budget for the month, and then you see these increments happen in different areas of your budget, and so any attempt to save or put away for retirement is curtailed because of that,” Watkinson said.

While San Diego posted the second highest inflation rates for a city in the nation – the number one spot went to Tampa Florida at 7.3% year over year.