The UK emerged from the economic damage inflicted by the pandemic over the last two years only to lurch straight into a new cost of living crisis. Disruptions to global supply chains, the swift reopening of the economy, and the war in Ukraine have all exacerbated economic stresses and significantly increased prices, particularly for energy. At the national level, there is a clear understanding of the nature and scale of the crisis. In May 2022, inflation climbed to a record high of 9.2 per cent – the highest rate observed in the past 40 years – but underneath this national figure, less is known about how the cost of living crisis is playing out across places. This report uses a city-level inflation estimate, developed for the first time by the Centre for Cities, and combines it with an analysis on wage growth to set out what the geography of the cost of living crisis is, what is driving it, and how the squeeze on disposable income is likely to be felt across the UK’s cities and largest towns.