San Diego Inflation Hits Highest Rate in US

Residents cope with rising costs of living, from burritos to rent

Published on Feb. 26, 2026

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San Diego's inflation rate reached 4% in November 2025, the highest in the nation, driven by soaring food, housing, and childcare costs. Residents are responding by accessing state benefits, reducing expenses, and postponing major purchases like homes.

Why it matters

San Diego's geographic constraints, including its location between the Pacific Ocean, Mexican border, and mountains, contribute to higher costs for goods and services, exacerbating the impact of broader economic trends on the city's residents. The inflation crisis is creating significant hardship, with over 850,000 of the county's 3 million residents facing food insecurity.

The details

San Diego's inflation rate tied with New York's at 3.8% in March 2025 and rose to 4% by November, the highest in the US. Iconic local foods like burritos have seen prices jump, with one burrito now costing $16 compared to $10 previously. Rising costs for ingredients, rent, and other expenses are being passed on to customers. Housing costs have also surged, with one resident's RV park rent increasing from $750 to $1,045 monthly. Childcare costs have risen 9% in the past year, compounding employment challenges.

  • In March 2025, San Diego's inflation rate tied with New York's at 3.8%.
  • By November 2025, San Diego's inflation rate rose to 4%, the highest in the nation.

The players

San Diego Hunger Coalition

An organization working to identify and enroll more eligible individuals in CalFresh to combat food insecurity in San Diego County, where over 850,000 of the 3 million residents do not have enough to eat.

Hishan Foad

An economics professor who noted that some local residents are questioning whether working 40 hours a week is worth it when so much of their income goes to childcare.

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What they’re saying

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The San Diego Hunger Coalition is working to identify and enroll more eligible individuals in CalFresh to combat food insecurity in the region.

The takeaway

San Diego's high inflation, driven by rising costs for housing, food, and childcare, is creating significant hardship for residents and raising questions about the long-term sustainability of living in the city. Residents are adapting by seeking assistance and making lifestyle changes, but the challenges remain significant.