San Diego, January 3, 2026
San Diego County has reported an inflation rate of 4%, making it the second-highest among major metropolitan areas in the U.S. This significant rise is primarily driven by increased housing and transportation costs. The housing shelter index rose by 5.3%, while transportation expenses surged by 6.7%. In comparison, the national average CPI is only 2.7%. These figures suggest that residents are facing a higher cost of living, prompting concerns among local policymakers about the economic implications for the community.
San Diego Ends Year with Second-Highest Inflation in U.S.
San Diego County’s inflation rate reached 4% in November 2025, marking the second-highest rate among major U.S. metropolitan areas.
Key Factors Contributing to Inflation
The primary drivers of this inflation include:
- Housing Costs: The shelter index increased by 5.3% over the year, significantly impacting overall inflation.
- Transportation Expenses: The transportation index rose by 6.7%, influenced by higher gasoline prices.
Comparison with National Inflation Rates
Nationally, the Consumer Price Index (CPI) for all urban areas increased by 2.7% over the same period. This indicates that San Diego’s inflation rate is notably higher than the national average.
Implications for Residents
The elevated inflation rate suggests that residents are experiencing a higher cost of living compared to other parts of the country. This trend has been consistent throughout 2025, with inflation rates in San Diego surpassing national averages in several months.
Background Context
Inflation measures the average change in prices over time for a basket of goods and services. In San Diego, significant contributors to the rising inflation include increased housing costs and transportation expenses. The shelter index, which reflects housing costs, saw a 5.3% increase over the year, while the transportation index rose by 6.7%, largely due to higher gasoline prices.
Looking Ahead
As of January 2026, the latest available data indicates that San Diego’s inflation rate remains elevated compared to national averages. Residents and policymakers may need to consider strategies to mitigate the impact of rising living costs on the community.
FAQ
What is the current inflation rate in San Diego?
The inflation rate in San Diego County was 4% in November 2025, the second-highest among major U.S. metropolitan areas.
What are the main factors driving inflation in San Diego?
The primary factors contributing to inflation in San Diego are increased housing costs and higher transportation expenses, including rising gasoline prices.
How does San Diego’s inflation rate compare to the national average?
San Diego’s inflation rate of 4% is significantly higher than the national average of 2.7% for the same period.
What does this mean for San Diego residents?
Residents are experiencing a higher cost of living compared to other parts of the country, which may affect their purchasing power and overall economic well-being.
What are the implications for policymakers?
Policymakers may need to consider strategies to address the elevated inflation rate and its impact on the community, such as implementing measures to control housing costs and transportation expenses.
Key Features
| Feature | Details |
|---|---|
| Inflation Rate | 4% in November 2025, second-highest among major U.S. metropolitan areas. |
| Primary Drivers | Increased housing costs (5.3% rise) and higher transportation expenses (6.7% rise). |
| National Comparison | San Diego’s inflation rate is higher than the national average of 2.7%. |
| Implications for Residents | Higher cost of living affecting purchasing power and economic well-being. |
| Policy Considerations | Need for strategies to address elevated inflation and its impact on the community. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
