By Jonathan Eberle |
According to a new report from the Common Sense Institute (CSI), inflation in the Phoenix metro area rose 1.4% year-over-year in August, as measured by the Consumer Price Index (CPI). The increase marks a climb from June’s 0.8% reading and ends a four-month stretch where local inflation hovered below 1%.
As noted by the report, the uptick comes as Arizona’s economy shows signs of slowing, with weaker job growth and a cooling housing market. Still, compared with much of the nation, inflation in Phoenix remains subdued. Among the 23 metro areas tracked monthly, Phoenix ranked 20th in year-over-year price growth, continuing a dramatic reversal from 2022 and 2023, when the region routinely topped the list for fastest-rising prices.
Nationally, inflation picked up in August, rising 2.9% from a year earlier after holding steady at 2.7% in the prior two months. Prices across the country have now exceeded the Federal Reserve’s 2% target for more than two years.
Since August 2019, consumer prices in Phoenix have climbed 30.2%, adding about $1,525 in monthly costs for the average Arizona household. Nationally, prices are up 26.3% over the same period. Typically, inflation would run closer to 10% in a five-year span. On a two-month basis, Phoenix saw a 0.9% increase from June to August, tying January for the largest short-term jump of the year. Nationally, prices rose 0.6% over that period.
Housing costs remain a key driver of Phoenix’s relatively low inflation reading. Shelter prices fell 0.1% year-over-year in August, the fourth consecutive month of negative growth. Excluding shelter, inflation in the Valley was 2.3%—still below the national average, but nearly double the headline local figure. The Federal Reserve, which aims to balance price stability with job growth, faces a complicated outlook. While local inflation has hovered below target for nearly a year, national prices have not fallen under 2.3% since 2021.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
