inflation news

Houston has the lowest inflation problem in the U.S., study finds

Inflation isn't affecting Houston as badly as the rest of the country.

Despite the national inflation rate sitting at 3 percent as of September 2025, the impact of inflation on Houston and the surrounding area isn't as severe as the rest of the U.S., a new study has revealed.

Houston-The Woodlands-Sugar Land ranked as the metro with the smallest inflation problem in the U.S. in WalletHub's October 2025 "Changes in Inflation by City" report.

The study tracked inflation changes for 23 major metropolitan statistical areas (MSAs) using Consumer Price Index data from the latest month available and compared to data from two months prior. The analysis also factored in inflation data from last year to analyze both short- and long-term inflation changes.

Compared to two months ago, the inflation rate in Houston fell by 0.1 percent, and local inflation is only 1.10 percent higher than it was a year ago, WalletHub said.

Houston residents may be feeling the sting a lot less than they did in January 2024, when WalletHub said the city had the 7th highest inflation rate in the country. And yet, Houstonians are increasingly concerned with the economy and its effects on inflation, a recent University of Houston survey found.

A separate WalletHub study dubbed Texas the No. 1 most "financially distressed" state in the U.S. for 2025, adding to the severity of Texans' economical woes.

U.S. cities with the worst inflation problems
Denver-Aurora-Lakewood, Colorado topped the list as the city with the No. 1 worst inflation problem as of September. The Denver metro saw a 1 percent uptick in inflation when compared to two months prior, and it's 3.10 percent higher than it was a year ago.

Elsewhere in Texas, WalletHub ranked Dallas-Fort Worth-Arlington as the metro with the 8th lowest inflation problem nationwide. That's a fair shift from a previous report from June 2025 that ranked DFW the No. 1 U.S. metro with the lowest inflation issues.

Source: WalletHub

The top 10 metros where inflation has risen the most as of September 2025 are:

No. 1 – Denver-Aurora-Lakewood, Colorado
No. 2 – Los Angeles-Long Beach-Anaheim, California
No. 3 – Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin
No. 4 – Boston-Cambridge-Newton, Massachusetts-New Hampshire
No. 5 –Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin
No. 6 – (tied) Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware-Maryland and Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia
No. 8 – Anchorage, Alaska
No. 9 – New York-Newark-Jersey City, New York-New Jersey-Pennsylvania
No. 10 – San Diego-Carlsbad, California

houston inflation wallethub economy

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Photo courtesy of Bottega Salaria

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Editor’s note: It's time to look back at the top Houston news of the week, including a surprise restaurant closure and a new Hill Country osteria with Houston ties. Plus, a roundup of New Year’s Eve parties and some of our favorite new bars of 2025. Catch up on our most popular stories below, then visit this guide to the weekend’s best events.

1. Houston restaurant vet serves up Roman-style eatery in the Hill Country. Houstonians know Valerio Lombardozzi from his time at La Table an Tavola, but he’s taking his talents to Fredericksburg, where he’s opening Bottega Salaria, a homey Italian osteria and artisan market.

2. Coastal-inspired Houston restaurant will shutter after 3 years in Montrose. Closing the restaurant allows the Big Vibe Group to focus on its two flagship concepts, Coppa Osteria and Flora.

3. CultureMap's 11 favorite new bars that shook up Houston in 2025. Our list of last year’s best new bars included everything from highly personal cocktail lounges to a glitzy room from the hospitality group behind one of Houston’s Michelin-starred restaurants.

4. Major closures, celeb sightings, more top Houston restaurant news 2025. One Houston chef’s abrupt departure from a restaurant in The Woodlands claimed two spots in last year’s most-read articles.

5. Close out 2025 with a bang at these Houston New Year's Eve parties. We rounded up more than 25 parties at bars, clubs, a baseball stadium and more.

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