The cost of “excess inflation” in Hawaii
The cost of living in Hawaii continues to rise. In March, the Urban Hawaii (Honolulu) Consumer Price Index (CPI) was 7.5% higher than it was one year ago, squeezing household budgets and disproportionately impacting low-income households. Honolulu last saw an elevated inflation rate of 6.0% briefly in mid-2006, but otherwise inflation has not been over 7.5% since 1991. The recent surge stands in stark contrast to the inflation experience of recent years: between 2017 and 2020, Honolulu inflation averaged just 1.9%. If we take 1.9% to be the typical inflation rate for Honolulu, then the additional 5.6% inflation for the year ending in March can be thought of as “excess inflation.”
