By Matthew Holloway |

In a new report from Common Sense Institute (CSI) Arizona, inflation as measured by the Consumer Price Index (CPI) in the Phoenix metro area, remained under the 2% target for the sixth consecutive month. In February, CSI Arizona recorded a year-over-year inflation rate of 1.8% for the metropolitan area. The national rate is currently +2.8% year-over-year, although it is down since President Donald Trump took office.

According to CSI Arizona, the largest driver of inflation has long been the cost of shelter, which was up +0.7% in February with annual shelter costs rising 1.2% year over year. In a post to X, CSI summarized the report stating, “Phoenix is outperforming most of the country when it comes to rising prices.”

The report noted, “Among the 23 metro areas measured in the CPI each month, Phoenix ranks 22 in year-over-year inflation (2nd lowest). This is a dramatic change from 2022-2023, when the region consistently ranked among the highest.”

CSI Arizona goes on to observe in the report that the rate of national inflation has historically followed trends in the federal deficit with an approximate lag of 12-24 months and local or state levels are subject to regional dynamics as well, but tend to correspond with the national rate. In December, Fox 10 reported that homelessness in Arizona saw a 3.5% increase since 2023, with over 14,000 people experiencing homelessness.

Nathan Smith, CEO of Central Arizona Shelter Services told the outlet, “The cost of living continues to outstrip what people are making, and we’re seeing that we’re at a bit of an inflection point here in Arizona as we are facing the highest eviction rate that we’ve ever had.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.