Holiday spending may not be the only thing adding stress to San Diegans’ finances.

San Diego County’s inflation rate was 4% in November, the second highest in the nation, said the U.S. Bureau of Labor Statistics’ final Consumer Price Index report of the year. The metro area covering Riverside and San Bernardino counties was the highest at 4.5%.

Inflation in San Diego County was running at 2.6% in November of 2024, but, like much of the nation, it started to rise again in early 2025. The latest inflation rate marks the third time in 2025 — including March and July — San Diego had the highest inflation in the nation.

The national rate in November was much lower, at 2.7%, and inflation rates in many metro areas outside of Southern California were below that. The lowest was the Dallas-Fort Worth metro area, at 1.1%.

Alan Gin, economist at the University of San Diego, said the biggest factors for Southern California’s financial woes were housing and gasoline costs. For example, housing was up 5.6% annually in San Diego, compared to 3% in the nation. The same pattern was true for gasoline: up 7.1% annually, compared to 1.1% nationally.

He said 2026 may be difficult for many San Diego workers because of continued rising prices.

“We’ve already seen a slowdown in hiring and job growth,” Gin said. “Tariffs have driven up prices and that will put a strain on people’s budgets. And if they have to spend more on housing and gas, that leaves less money for people to spend on other products.”

The data itself was subject to heavy scrutiny by economists, including Gin, and business analysts. The report was delayed and likely distorted by the 43-day federal shutdown, they said. The Labor Department was unable to compile numbers during October.

President Donald Trump has praised the national inflation rate, which was much lower than the pandemic high of 9.1% in June 2022. In a speech earlier this month in Pocono, Pa., he said his administration was “crushing” inflation. “We’re bringing those prices down rapidly,” Trump said.

It wasn’t all doom and gloom for San Diego, with food prices being down and at least some hope for slowed rent increases. Bill McBride, author of the well-known economics blog Calculated Risk, noted that asking rents nationwide and in San Diego County have been flat for roughly two years.

“I actually think that we’ll continue to see that shelter inflation (rate) drop,” McBride said.

On an annual basis, here are the areas where prices changed in San Diego County:

Motor fuel: The price for unleaded regular was up 7.2%; unleaded midgrade was up 6.6%; and unleaded premium was also up 6.6%.
Food: Cereals and bakery products were down 0.3%; dairy, down 2.7%; fruits and vegetables, down 3.9%; and meats, poultry, fish and eggs were up 2.1%.
Shelter, including rent and owners’ equivalent of rent, was up 5.6%.
Transportation costs, which include automobile maintenance, vehicle parts and car insurance, were up 7.1%. Used car and truck prices were up 2.8%.
Apparel: Down 6.3%.
Medical care: Up 3.7%.

When volatile food and energy costs are removed from the overall inflation rate, so-called core inflation in San Diego County saw a 4.2% annual rise, compared to 2.6% for the nation.

Nationally, inflation was highest in the Northeast at 3.1%. It was followed by the West and Midwest at 3%, and the South at 2.2%.