Florida’s Economy Ranks #1 in the U.S.—Positioned to Weather Rising Prices
By: Sheridan Morby, Senior Research Economist, Florida Chamber Foundation
According to CNBC’s recently released “America’s Top States for Business” rankings, Florida is a Top 3 state for business in 2025 – and boasts the number one economy in the country. CNBC’s rankings considered over 130 metrics across 10 categories of competitiveness, and Florida is among the leading states. This year’s ranking placed particular emphasis on a state’s economic climate – and Florida topped the list in 1st place. In a year marked by fundamental shifts in how states compete for business, Florida’s strong economic performance positions it to better weather national economic changes. One of the most pressing national trends is the rise in consumer prices.
Prices Are on the Rise
The upward trend of prices continued in June, and the increase was larger than many expected–2.7% higher than they were a year ago. The relationship between inflation, interest rates, and the business cycle was detailed in our last economic news report – an increase in inflation is likely coming from the impact of tariffs, and leads to an expectation that the Federal Reserve will keep interest rates steady. While inflation did remain steady at the beginning of the year, June marked the most significant increase in the inflation rate in 2025. This increase gives some fuel to the expectation that tariffs would increase prices, and rates are once again expected to be held steady by the Federal Reserve – the official announcement will be on July 30th.
While the increase in prices over the year is most commonly the metric used when referring to the “inflation rate,” it is also important to consider the price changes over the month. There is a watchful eye on prices as decision makers at the Federal Reserve and consumers alike are keeping an eye on an economic landscape that is developing month by month, especially as the impact of tariffs is one of the biggest questions right now. Over the month, prices for all items increased by 0.3%.
The overall inflation rate is influenced by prices across various categories. At a high level, there are eight major categories: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services – some of these categories have a larger influence than others on overall inflation. For example, housing has the largest relative importance on inflation rates, accounting for 44% of the total. Nearly 60% of the index is housing and food.
Over the last month, every major category saw a price increase. Over the last year, all but transportation and apparel saw a price increase.
Monthly price changes offer a snapshot of the short-term impact of recent economic shifts and indicate an increase in prices across all categories. Annual inflation reveals deeper trends by category – for example, housing prices are persistently increasing. Prices in transportation and apparel may be a newer trend, as prices are down over the year. Together, these data points highlight how current economic decisions are unfolding in real time – and we will have to wait and see how these monthly shifts shape the full story of the economy in 2025.
Stay Informed
Be on the lookout for our forthcoming 2025 Florida Business & Economic Mid-Year Report coming out later this month where we provide even more analysis on how this trend and others are affecting the landscape for businesses in Florida.
Additionally, to stay up to date as new data is released on inflation, interest rates, labor market statistics, and more, visit TheFloridaScorecard.org and subscribe to our Florida Chamber Foundation’s Florida By the Numbers economic updates.