Balancing a household budget became trickier this spring as rising gasoline prices boosted Southern California inflation to its 2026 high.<\/p>\n
My trusty spreadsheet<\/a> reviewed May\u2019s Consumer Price Index report<\/a>, averaging results for local regions \u2013 Los Angeles and Orange counties<\/a>, the Inland Empire<\/a>, and San Diego<\/a> \u2013 and comparing local cost-of-living swings to national trends.<\/p>\n Southern California prices rose at a 3.6% annual rate in May, based on a two-month average of the three local indexes. That\u2019s the fastest local cost-of-living climb since December 2025, and up from 3.1% a year ago.<\/p>\n Still, for a longer-term perspective, local inflation is running below the 3.9% average we\u2019ve seen since 2019.<\/p>\n Across the country, inflation is even hotter<\/a>. Prices grew at a 4.2% annual pace in May, up from just 2.4% a year ago. It\u2019s also the fastest pace in three years and above the 3.7% average since 2019.<\/p>\n Shrinking pay raises make this revived inflation especially bothersome to consumers.<\/a>\u00a0Wages in the first quarter rose only 3.1% annually across Southern California \u2013 and 3.4% nationally, according to a federal employer cost index.<\/p>\n Pain at the pump<\/p>\n Blame gasoline for most of the latest inflation pain. Prices at the pump skyrocketed as the war in Iran sent crude oil costs soaring.<\/a><\/p>\n Locally, gas prices are up 27% over the past year, the biggest increase since October 2022. This is a big change from a year ago, when prices were falling by 9%. Since 2019, Southern California\u2019s gas prices have risen an average 6% each year.<\/p>\n Nationally, gasoline\u2019s up 41% in the year through May \u2013 a switch from a 12% drop a year ago and well above the 5.3% average rate since 2019.<\/p>\n Food fight<\/p>\n Your supermarket run is adding to your inflation headache<\/a>, too.<\/p>\n Southern California\u2019s grocery prices jumped 2.5% over the past year, the largest increase since September 2025. This is higher than the 1.9% rise a year ago, but still less than the 4% average since 2019.<\/p>\n Nationally, the \u201cfood at home\u201d index is 2.7% higher in the year through May. That\u2019s up from 2.2% a year ago, but lower than the 3.9% average since 2019.<\/p>\n Housing help<\/p>\n The good news is a slower rise in the cost of keeping a roof over one\u2019s head.<\/p>\n According to the CPI, Southern California\u2019s housing inflation is at its lowest since August 2021. The 2.9% increase in the year ending in May is off from 3.9% a year ago and below the 4.4% average since 2019.<\/p>\n What\u2019s behind housing\u2019s chill? Economic uncertainty and an uptick in local residential construction pushed landlords to cut rents while home prices were throttled.<\/p>\n Nationally, housing costs are up 3.6% in the year through May. That\u2019s down from 4% a year ago and below the 4.3% average rate since 2019.<\/p>\n Minus food, energy<\/p>\n Some economists will tell you inflation is cooling.<\/p>\n Their main argument? They look at a version of the CPI that leaves out food and energy costs.<\/p>\n Who can live without food and energy? That\u2019s why many folks are skeptical of economic analysts these days.<\/p>\n Contemplate that this so-called \u201ccore\u201d inflation in Southern California was rising at a 2.5% annual rate in May. This represents its slowest pace since April 2021. It\u2019s also down from 3.6% a year ago and a 3.7% average since 2019.<\/p>\n Nationally, core inflation is up 2.9% through May. That\u2019s a smidge higher than 2.8% a year ago, but still below the 3.5% average since 2019.<\/p>\n Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com<\/a><\/p>\n