San Diego inflation is on the rise, but not as much as the U.S. average

Inflation is on the rise in San Diego County but, uncharacteristically, it's not as high as the rest of the nation.

The region's inflation rate was 3.8%, up from 3.2% in May, according to the U.S. Bureau of Labor Statistics' Consumer Price Index released Wednesday. That compares to 4.2% for the nation.

Rising gasoline prices were the biggest factor in San Diego's inflation rate - motor fuel up 29.2% in 12 months - but it was also the reason why the region didn't look as bad as the U.S. average, which has seen gasoline rise 40.9% annually.

At least some of the reason for the difference: Californians already pay more for gas because of higher fuel standards than the rest of the nation. So, when looking at a year-over-year change, it didn't have as much to climb as say, Minneapolis, which was up 42.3% in a year.

Selma Hepp, economist at Irvine-based Cotality, said an inflation rate lower than the national average is probably of little comfort to San Diegans trying to make ends meet. Prices are still higher in San Diego County than many parts of the U.S., even if they are rising more slowly in some categories.

"It's a significant pressure on lower income groups," Hepp said. "Compared to someone with a higher income that is never going to think twice about the fact gas prices are up. This is the main concern to me: People on the lower end are being squeezed in all directions."

Global fuel prices have surged since the start of the Iran conflict. Iran effectively closed the Strait of Hormuz starting March 2, sending shockwaves through the global oil supply. The strait is where 20% to 25% of the world's oil passes.

The U.S. has seen prices rise much less than other developed nations, such as Germany and the U.K., because Americans pay some of the lowest fuel taxes in the world and the U.S. is the world's biggest oil producer.

In the past two months, San Diegans saw prices decline in a few categories: Apparel costs were down 2.4%, dairy and related products were down 2.2%, and household furnishings were down 2.1%.

For most of the past five years, San Diego County has had a higher inflation rate than the nation, typically attributed to gas and housing price. San Diego's inflation rate was lower in March than the nation, 3.2% to 3.3%, but it was only among a handful of times this has occurred in the past few years.

On an annual basis, here are the areas where prices changed in San Diego County:

•Motor fuel: The price for unleaded regular was up 29.5%; unleaded midgrade was up 28.6%; and unleaded premium was up 28%.

•Food: Cereals and bakery products were up 3.6%; dairy, up 0.5%; fruits and vegetables, up 1.9%; and meats, poultry, fish and eggs were up 3.6%.

•Energy, including household energy and motor fuel: up 27%.

•Shelter, including rent and owners' equivalent of rent, was up 2.4%.

•Transportation costs, which include automobile maintenance, vehicle parts and car insurance, were up 6.6%. Used car and truck prices were down 3.1%.

•Apparel: up 3.8%.

•Medical care, which includes hospital and related services, drugs and medical equipment and supplies, was up 3.2%.

When volatile food and energy costs are removed from the overall inflation rate, so-called core inflation in San Diego County was 2.5%, below the nationwide average of 2.9%.

Nationally, inflation was highest in the Northeast at 5% and the Midwest, also at 5%. It was followed by the South at 3.9% and West at 3.5%.

Inflation rate by metro area

Urban Hawaii: 5.1%New York-Newark-Jersey City, N.Y.-N.J.-Penn.: 5.1%Denver-Aurora-Lakewood, Colo.: 5%Minneapolis-St. Paul-Bloomington, Minn.-Wis.: 4.7%Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.: 4.1%San Diego-Carlsbad: 3.8%Chicago-Naperville-Elgin, Ill.-Ind.-Wis.: 3.7%Los Angeles-Long Beach-Anaheim: 3.6%Riverside-San Bernardino-Ontario: 3.4%Boston-Cambridge-Newton, Mass.-N.H.: 3.2%Tampa-St. Petersburg-Clearwater, Fla.: 3.2%Dallas-Fort Worth-Arlington, Texas: 2.6%

Source: U.S. Bureau of Labor Statistics' Consumer Price Index

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published June 10, 2026 at 3:20 PM.