HONOLULU (KHON2) — While some cities in the United States continue to battle rising prices, Hawaiʻi’s own Honolulu stands out for keeping inflation in check.
According to a new report released Aug. 12, Urban Honolulu ranks number 21 out of 23 major U.S. metro areas when it comes to inflation impact.
That puts Hawaiʻi’s capital amongst the three best cities nationwide for low inflation.
Here’s what the study found.
Cool numbers in a hot economy
The study analyzed the Consumer Price Index (CPI) in two ways: comparing the latest CPI numbers to those from two months ago and to the same time last year.
Honolulu saw a decrease of 0.3% from two months ago. That’s one of the lowest short-term changes in the country, tied with Dallas and Boston.
In the long term, Honolulu’s CPI rose 2.3% over the last year. That’s still below the national average of 2.7% for July and well below cities like San Diego, which saw a 4.0% increase.
Context from the continent
Inflation rates have cooled nationally since peaking after the pandemic. But they remain above the Federal Reserve’s target of 2%.
Despite this, the Fed has not raised interest rates since December 2024. Higher costs continue to be driven by global conflicts, labor shortages and the abolition of free trade via new tariffs.
San Diego, Riverside and Tampa showed the highest year-over-year price increases. In contrast, Phoenix saw the smallest bump at just 0.2%.
Inflation rates have cooled nationally since peaking after the pandemic. But they remain above the Federal Reserve’s target of 2%.
A stable CPI can mean steadier prices for everyday goods, services and housing. While it doesn’t solve everything, Honolulu’s position shows the city is holding its ground better than most.
To see the full report, click here.