By Matthew Holloway |
A new report from the Common Sense Institute Arizona (CSI) titled the “Inflation Misery Index” was released last week. The report illustrates how unsustainably expensive it has become to live and raise a family in Arizona due to ballooning inflation under the Biden-Harris Administration. The report also breaks down the cost of living increase that has battered Arizona families since 2019 and demonstrates irrefutably that the cost of maintaining the same standard of living has risen 24% since before COVID.
In a press release from CSI, Zachary Milne, Senior Economist and Research Analyst explained, “The prolonged period of high inflation has taken a serious toll on the financial stability of Arizona’s households. Our findings highlight not only the immediate increase in costs for essential goods and services but also the long-term decline in purchasing power. As inflation continues to outpace income growth, many Arizonans are facing tough financial choices to maintain their standard of living.”
Sharing the report in a post to X, CSI wrote, “Over the past 43 months, inflation in Arizona has caused the average household to lose 24% of their purchasing power. That’s nearly $25,000 in lost income!”
According to the report’s key findings, the Inflation Misery Index “holds constant consumption preferences through time,” and mathematically accounts for “normal” levels of inflation and personal income growth. The index uses 2019 as a baseline “because it precedes both the recent inflationary surge and the stimulus income received from the government in response to the pandemic in 2020.”
With these parameters in mind, CSI reported that the average person living in Arizona is compelled to spend $9,996 more per year in order to purchase the same quantity of goods and services as they did in 2019.
The report also clearly defines the increase per household: “Excess inflation over the last 43 months means the average household in Arizona must spend $24,972 more per year to consume at 2019 levels. This means that the average household has effectively lost 24% of their income to inflation.”
Broken down categorically, the inflation has impacted Arizona families in the following amounts:
- $6,900 increase for housing and utilities.
- $4,371 increase in food expenses.
- $1,189 increase in recreational spending.
- $772 increase in fuel/gasoline.
The report concluded, “It will take a prolonged period of normal or below-average (sub 2%) inflation coupled with strong income growth to recover the purchasing power lost by the post-covid inflationary crisis.” In stark contrast to the White House narrative extolling alleged slowing of inflation, the CSI wrote, “The slowing rate of inflation alone is insufficient to undo the damage caused by the rapid rise in the price level.”
Just one day prior, Congressman David Schweikert (R-AZ) posted the findings of the Congressional Joint Economic Committee Republicans noting, “For Arizonans, the dollar doesn’t go as far as it used to. In fact, Personal Consumption Expenditures per capita increased 7.2% ($27.1 billion) in 2023, spending 12.1% more on rent, & 9.5% more for health care.” Schweikert noted that Arizona had the fifth highest increase.
Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.