by Ethan Faverino | May 17, 2026 | Economy, News
By Ethan Faverino |
Arizona continues to experience relatively slower inflation than much of the nation, according to a new analysis from the Common Sense Institute (CSI) examining the latest U.S. Bureau of Labor Statistics Consumer Price Index (CPI) data for April 2026.
The Phoenix metro area CPI rose 3% year-over-year in April, up from 1.7% in February. While this marks an acceleration, it remains well below the national rate, which increased from 2.4% to 3.8% over the same period.
The uptick in both local and national figures was driven primarily by surging energy prices amid fallout from the conflict with Iran.
In the Phoenix Metro area, energy costs climbed 22.9% year-over-year, outpacing the national increase of 17.5%. Stripping out this volatile category reveals significantly more moderate underlying price pressures: Phoenix inflation excluding energy stood at 1.7% (down from 1.9% in February), compared to 2.8% nationally (up from 2.6%).
Since April 2019, consumer prices in the Phoenix metro area have risen 34.6%, resulting in an estimated additional $1,647 in monthly costs for a typical Arizona household. Nationally, prices have increased 30.2% over the same seven-year period. In a typical seven-year span, cumulative inflation would be expected to total closer to 14.9%.
More recently, however, Phoenix inflation has tracked below the Federal Reserve’s 2% annual benchmark. Cumulative inflation in the metro area since April 2024 stands at just 3.4%, below the roughly 4% that would align with steady 2% annual growth.
Among the 23 metro areas tracked by the CPI, Phoenix recorded the 8th slowest year-over-year inflation rate in April. For the 14 regions that reported data, it posted the 2nd slowest. A key contributor is the shelter category, where Phoenix inflation measured just 0.8% year-over-year — substantially lower than the national figure of 3.3%.
While headline CPI figures are conventionally used as a proxy for inflation, CSI noted that the metric measures a fixed basket of goods and can be heavily influenced by volatile components like energy.
The recent national spike to 3.8% is largely attributable to relative price increases in energy rather than broad-based inflationary pressure. Core inflation (excluding energy) remains meaningfully lower, though national prices have not returned sustainably to the 2% target.
Sustained inflation above 2% since 2021 reflects structural challenges, including elevated federal deficits. National inflation trends have historically followed federal deficits patterns with a 12 to 24-month lag, and persistent high deficits — averaging $2.2 trillion annually from 2020 to 2024 — continue to complicate efforts to achieve price stability through monetary policy alone.
The annualized federal deficit for early 2026 remains at $2.2 trillion.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 15, 2026 | Economy, News
By Matthew Holloway |
The Consumer Price Index rose to 3.81 percent year-over-year in April, marking the highest annual inflation rate in nearly three years, according to the latest Monthly Inflation Update released Tuesday by Republicans on the Joint Economic Committee (JEC).
According to the report, headline Consumer Price Index for All Urban Consumers (CPI-U) increased from 3.26 percent in March to 3.81 percent in April. Core CPI, which excludes food and energy prices, rose to 2.75 percent year-over-year in April, up from 2.60 percent in March.
April’s increase marked the highest annual headline inflation rate reported since mid-2023, reversing several months of comparatively slower price growth.
The JEC reported that energy prices experienced the sharpest annual increase among major categories, with energy inflation reaching 17.87 percent year-over-year in April, representing a 21.61 percentage point increase compared to April 2025.
Food prices also increased year-over-year. According to the report, food inflation reached 3.18 percent in April, 0.42 percentage points higher than the same period last year.
Regionally, inflation rose across all major areas of the country between March and April. The Northeast recorded the highest inflation rate at 4.4 percent, followed by the Midwest at 4.1 percent and the South at 3.6 percent. The West recorded the lowest regional inflation rate at 3.5 percent.
While the West recorded the nation’s lowest regional inflation rate, the 3.5 percent increase still remained above the Federal Reserve’s long-term two percent inflation target. Declining real wages indicate that inflation continued to outpace earnings growth for many workers during the month, reducing purchasing power despite nominal wage increases.
The JEC’s Monthly Inflation Update compiles and analyzes federal inflation data released by the U.S. Bureau of Labor Statistics. The report also found that inflation-adjusted earnings declined during the month.
According to the JEC, real average weekly earnings for all employees decreased by 0.19 percent from March to April. Real average hourly earnings declined by 0.53 percent year-over-year, representing a 0.44 percentage point decrease compared to April 2025.
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.
by Matthew Holloway | May 14, 2026 | Economy, News
By Matthew Holloway |
Arizona’s housing market continues to face significant affordability challenges despite slowing home prices and rising inventory levels, according to an update released this week by the Common Sense Institute (CSI) Arizona.
The report estimates Arizona faced an immediate housing shortfall of 55,992 units in 2025, while the state’s cumulative long-term housing deficit has reached approximately 110,837 units. According to CSI, current residential permitting trends suggest it could take more than a century to eliminate the existing housing gap.
CSI reported Arizona issued 50,983 residential permits in 2025, representing a 14 percent decline from 2024 and the slowest pace of permitting activity since 2019. The organization concluded that slowing construction activity continues to constrain the state’s housing supply, despite weakening demand in some markets.
“Arizona’s housing market is no longer experiencing the rapid price growth seen during the pandemic-era boom, but affordability challenges remain deeply embedded in the market,” said Glenn Farley, Director of Policy and Research at Common Sense Institute Arizona. “The state continues to face significant supply constraints, and while softer demand has created some short-term relief for buyers, long-term progress will ultimately depend on a sustained increase in housing production and permitting activity.”
According to the report, Arizona’s housing market has become more favorable for buyers in the short term as inventory levels rise and price growth slows. However, CSI stated the shift reflects softer buyer demand rather than substantial improvements in housing availability.
Average home prices in Arizona declined approximately 2.9 percent in 2025, though CSI noted prices remain roughly 11.1 percent above pre-pandemic trends. The report estimated the average home price statewide at approximately $420,900.
Mortgage affordability also remains under pressure. CSI estimated that a household would need an annual income of approximately $87,000 to afford the average-priced home in Arizona under conventional underwriting standards.
The organization found Arizona households now require roughly 58 hours of work per month at the average wage to service a standard mortgage payment, compared to approximately 38 hours per month in 2019. CSI estimated only 42 percent of Arizona households can currently afford the monthly mortgage payment on an average-priced home without exceeding standard debt-to-income guidelines. In 2019, approximately 66 percent of households met that threshold.
CSI also reported that Arizona home prices have declined approximately 3.4 percent statewide since June 2024, representing the third-fastest rate of decline nationally during that period.
It assigned Arizona a preliminary “C-” Housing Report Card grade for 2025, down from a “C+” at the end of 2024. The report follows CSI’s earlier affordability rankings that identified Arizona among the least affordable states in the country based on housing costs relative to household income.
Farley and CSI Arizona Senior Economist & Research Analyst Zachary Milne, who co-authored the report, concluded, “Arizona’s market is healthier than it was but remains paralyzed by inefficiencies. Prices have stopped rising but also haven’t come down much off their all-time highs. Combined with high interest rates, entering the housing market remains a daunting task for any prospective new buyer. Home permitting is slowing, migration and household formation are down, and the state is losing its luster as an affordable place to move to and create a life.”
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.
by Staff Reporter | May 11, 2026 | Economy, News
By Staff Reporter |
The labor market is on a continued decline in Arizona, per the latest federal data reporting for March.
Arizona’s reported numbers marked one of the worst months of decline in the labor market nationwide, according to an analysis published this week by the Common Sense Institute (CSI) in its review of Bureau of Labor Statistics (BLS) data for March.
CSI stated in a press release that the BLS data indicated Arizona’s labor market had exhibited an increased divergence from national trends this year: slowing employment growth, rising unemployment, and weaker wage growth. Overall, CSI said these behaviors indicated the state would be enduring a tougher economic environment.
Arizona recorded its first monthly job loss of this year, losing around 2,600 nonfarm jobs. This caused the state to be placed 12th in terms of worst employment performance nationwide. The state also lost 300 manufacturing jobs, bringing the year-over-year total to 1,300 jobs lost, and 1,600 trade, transportation, and utilities jobs, bringing the year-over-year total to 6,200 jobs lost.
Arizona and 15 other states experienced month-over-month job losses. March marked the seventh consecutive month of year-over-year job losses for Arizona.
“[T]he confluence of a falling labor force participation rate and rising unemployment rate further point to a souring labor market in the state – a trend we highlighted in the previous Jobs and Labor Force Update,” stated the CSI report.
The nation gained 178,000 jobs in March, overcoming the loss of 133,000 jobs in February.
Arizona had a middling ranking year-over-year for job growth nationally (36th) and a lower ranking year-over-year for hourly wage increases (44th). The jobs ranking improved slightly from earlier this year (43rd).
Arizona has been losing jobs year-over-year since last August, warned CSI, while the growth of jobs has slowed steadily since 2022.
In the latter dataset, Arizona hourly wages increased nearly two percent year-over-year. Real wages rose up by more than half a percent year-over-year, compared to the national average of 1.3 percent.
The state’s employment rate rose to 4.7 percent.
The trend in Arizona aligns with the overall decline experienced across the nation. Job openings fell in March, though a recent hiring surge surpassing several years of pacing indicates this decline may stabilize or even turn around.
Acting BLS Commissioner William Wiatrowski, a longtime component of the agency, has defended the labor market reports amid months of criticisms from President Donald Trump. It was the president’s dissatisfaction with BLS reports, in part, that prompted the removal of Wiatrowski’s predecessor last summer.
Earlier this year, Wiatrowski denied accusations that poorer reports were manipulated or influenced to benefit Democrats.
“I can tell you there is no outside interference in the data,” said Wiatrowski. “If anyone was cooking the books, I would be one of the first persons shouting.”
Trump has nominated another longtime BLS economist and twice member of the president’s Council of Economic Advisors, Brett Matsumoto, to take over as the permanent commissioner.
“For many years, the Bureau of Labor Statistics, under WEAK and STUPID people, has been FAILING American Businesses, Policymakers, and Families by releasing VERY inaccurate numbers,” said Trump in a Truth Social post in January. “I am confident that Brett has the expertise to QUICKLY fix the long history of issues at the BLS on behalf of the American People. Brett Matsumoto is a Brilliant, Reputable, and Trusted Economist who will restore GREATNESS to the Bureau of Labor Statistics.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | May 10, 2026 | Economy, News
By Ethan Faverino |
The Joint Economic Committee released its Monthly Employment Update for April 2026, showing the U.S. economy added 115,000 nonfarm payroll jobs, exceeding expectations. The gain was driven entirely by the private sector which added 123,000 jobs, while government employment declined 8,000.
Nonfarm payroll employment now stands at 158.74 million, with private sector payrolls at 135.43 million and government payrolls at 23.31 million. The headline unemployment rate (U-3) held steady at 4.3%, while the broader U-6 measure, which includes underemployment, rose 0.2 percentage points to 8.2%. The labor force participation rate declined 0.1 percentage points to 61.8%.
March’s job gain was revised upward by 8,000 to a total of 185,000, while February’s figure was revised downward by 64,000, resulting in a net loss of 156,000 jobs for that month.
In April, the strongest job gains occurred in trade, transportation, and utilities, which added 60,000 positions, and private education and health services, which added 46,000. Losses were recorded in information (-13,000) and financial activities (-11,000).
Over the past year, from April 2025 to April 2026, private education and health services led with 618,000 new jobs, followed by leisure and hospitality with 142,000. The largest declines came in federal government (-311,00) and information (-92,000).
Wage growth remained moderate over the year. Average nominal weekly and hourly earnings for all employees on private nonfarm payrolls both increased by 3.57%. For production and nonsupervisory employees, average nominal weekly earnings rose 3.97%, while average nominal hourly earnings increased 3.67%.
The Job Openings and Labor Turnover Survey for March 2026 showed job openings declining by 56,000 to 6.87 million, with the rate falling to 4.1%. Private education and health services and financial activities posted gains in openings, while professional and business services experienced the largest drop. Hires increased sharply by 655,000 to 5.55 million, and total separations rose by 356,000 to 5.38 million, with both quits and layoffs and discharges seeing notable increases.
In Arizona, the labor market softened in March as the state lost 2,600 net payroll jobs and the unemployment rate edged up 0.1 percentage points to 4.7%, following a gain of 10,100 jobs the previous month.
Over the past 12 months, Arizona has lost 8,600 net payroll jobs while its unemployment rate has risen 0.5 percentage points from 4.2%. The state’s private sector lost 2,400 jobs in March, and employment overall fell by 19,093 during the month. Arizona’s labor force participation rate declined to 61.4% ranking 34th in the nation.
From February to March 2026, Arizona saw gains in private education and health services and professional and business services, offset by losses in leisure and hospitality and trade, transportation, and utilities. Over the full year, private education and health services rained the strongest performer in the spare, while trade, transportation, and utilizes and financial activities posted the largest declines.
Nationally, the labor force participation rate stood at 61.9% in March.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | May 9, 2026 | Economy, News
By Staff Reporter |
Arizona’s Permanent Land Endowment Trust Fund (PLETF) market value surpassed $10 billion, the Arizona Treasurer’s Office announced.
PLETF reflects the deposits and investments of proceeds from public land sales. The federal government gave nearly 11 million acres to Arizona for endowment when it achieved statehood in 1912, just as it had done for other states.
PLETF has 13 beneficiaries, but its main beneficiaries are K-12 public schools, which includes the Arizona State School for the Deaf and Blind. Other beneficiaries include the state’s universities; state prisons; the State Hospital; the legislative, executive, and judicial branches; the Arizona Miners’ Hospital; and the Arizona Pioneers Home.
(State law slated the Arizona Pioneers Home and Arizona Miners Hospital for termination in July 2032).
Arizona Independent Redistricting Commission data reported the remaining total of state trust land to be about nine million out of the original 11 million acres. The state has a total of nearly 73 million acres.
That nine million acre estimate equals about 13 percent of total land in the state. Privately-held land only makes up 14 percent of Arizona land.
PLETF’s 10-year returns were reported to have outperformed the average U.S. college and university endowments for the past decade.
In February, the PLETF had a fair market value of $10.1 billion.
The latest reported all-time high, the newest in a succession of all-time highs, can be attributed to the treasurer office’s director of endowments, Tim White.
White has managed PLETF’s stock portfolio for nearly 30 years (since 1999). Per the treasurer’s office, White has the ultimate decision-making responsibility on all holdings and trades for PLETF.
White’s tenure has overseen a growth of the PLETF fair market value from $475 million in 1992 to repeated all-time highs, including the most present reporting.
Despite this progress, some argue the PLETF could be doing more.
The Common Sense Institute Arizona (CSI) issued a report critical of the approach to the PLETF last November. In it, CSI argued that the administration of PLETF has failed for a long time — not just for the duration of this administration, but for the last 100 years.
CSI claimed PLETF could have been worth more than $163 billion, over sixteen times this latest historic amount, and could have distributed $140 billion to beneficiaries.
CSI estimated in its report that the ordered sale of remaining trust land over the next ten years would generate more than $18 billion in revenue and $55 billion in new economic activity.
The organization’s director of policy and research, Glenn Farley, told KJZZ last December that the state has taken the most action on growing the financial account but hasn’t taken enough action on selling the physical land. Farley advocated for a “foundational reevaluation” of the state’s timeline for land sales and its PLETF priorities.
“[T]his is not an administrative problem,” said Farley. “This is a 100-year problem. No administration in this state has really taken full advantage of this asset.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
