Inflation in Los Angeles and Orange counties hit a 23-month high in April as a war-fueled gas-price surge hit consumers’ wallets.
My trusty spreadsheet reviewed the Consumer Price Index report for April for the two Southern California counties and the nation to track the financial impact of the war in Iran on household budgets. The price of crude oil — key to gasoline production — has skyrocketed as Middle Eastern hostilities have disrupted the region’s energy transport routes and damaged fuel production facilities.
It adds up to L.A.-O.C. shoppers hurt by overall prices rising 3.7% in the year ended in April, according to CPI math. That’s the highest inflation rate since May 2024.
As a result, some of the progress on inflation made through 2025 is gone. Local inflation averaged 3.2% last year, down from 7.7% in 2022.
Rekindled inflation pain doesn’t only take a bite out of the finances of local families that struggle in an already pricey place to live. These higher expenses also put a strain on many of the region’s businesses, which face shoppers with less money to spend.
These price hopes also dim hopes for lower interest rates. The Federal Reserve is now more worried about inflation than the wobbly job market. Those concerns likely delay possible rate cuts.
April’s inflation jump is part of a painful upswing that pushed the L.A.-O.C. cost of living up 29% in six years. Such a surge is a key reason why inflation — and how to tame it — will be a huge issue in upcoming elections, both statewide and nationally.
What’s the pain
So what drove up the local cost of living?
Drivers know the pain at the pump: By CPI math, gasoline is 24.5% costlier over the past year vs. a 3.6% drop in 2025. Still, local gasoline is 105% pricier since 2020.
L.A.-O.C. grocery expenses also hit household budgets, up 4.3% in the past year vs. a 2.4% gain for 2025. A trip to the market to feed your flock is 31% more expensive than in 2020.
And if there was good news in the inflation report, it was that housing costs were up only 2.8% during the past year. Compare that to a 3.7% gain in 2025.
Still, putting a roof over a Southern Californian’s head has gotten 26% more expensive over the past six years.
These cost-of-living hikes largely erase the value of recently generous pay hikes. By one government measure, the typical Southern California boss increased the wages they paid by 33% in the past six years.
Nationally speaking
This is not a local quirk or some Southern California shortcoming. Consumers across the nation face price pressures, too.
The overall U.S. inflation rate rose to 3.8% in April, up from 2.7% in 2025.
Yes, it’s not the 8% of 2022. Still, April had the nation’s fastest inflation pace since May 2023. The CPI has jumped 30% in six years.
The war also hurts U.S. drivers. They’re paying 28% more for gasoline over the past year, compared with a 5.7% drop in 2025. Pump prices nationwide are up 116% since 2020.
American grocery bills are up 2.9% in the past year, after gaining 2.2% in 2025. It’s part of a 27% surge since 2020.
And housing nationwide was 3.6% costlier over 12 months, compared with a 3.8% gain in 2025. This cost, the typical household’s biggest expense, has risen 32% over six years.
While juggling these price hikes, the typical American worker had a boss who was less generous than those in Southern California. U.S. wages rose just 27% in six years.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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