The annual inflation rate in the Phoenix metropolitan area slowed to 2.8% in June, remaining below the national rate as falling energy prices and comparatively modest shelter-cost growth eased pressure on the region’s Consumer Price Index (CPI).
The Phoenix-area CPI increased 2.8% during the 12 months ending in June, down from 3% in April, according to a new Common Sense Institute (CSI) analysis of federal inflation data. National consumer prices increased 3.5% over the same annual period.
CSI attributed much of the local decline to energy prices, which fell 6.4% during June after increasing 26.5% between February and May. The earlier increase helped drive Phoenix’s annual inflation rate from 1.7% in February to 3% in April, according to CSI.
Inflation has slowed but prices are still much higher than they were five years ago.
Since June 2019, prices in the Phoenix metro have increased 33.4%, adding an estimated $1,673 per month to the budget of a typical Arizona household.
— Common Sense Institute Arizona (@CSInstituteAZ) July 15, 2026
Energy remained more expensive than it was one year earlier. The U.S. Bureau of Labor Statistics reported that Phoenix-area energy prices were up 14.1% year-over-year in June, while gasoline prices were 26.2% higher. The local energy index declined 4.4% over the two-month period ending in June, including a 10.7% decrease in gasoline prices.
Nationally, the CPI declined 0.4% from May to June on a seasonally adjusted basis, marking the largest monthly decrease since April 2020, according to the BLS national inflation report. The national energy index fell 5.7% during June, including a 9.7% decline in gasoline prices. National consumer prices remained 3.5% higher than one year earlier, while energy prices were up 15.7%.
Shelter costs also helped keep Phoenix inflation below the national rate. Shelter prices increased 1.4% year-over-year in the Phoenix area, compared with 3.3% nationally. CSI said home prices have cooled in Arizona during the past two years while national home prices continued to increase, reducing shelter’s contribution to Phoenix-area inflation.
CSI said the gap between Phoenix and national shelter inflation has narrowed during the past six months as housing markets elsewhere began to cool. When shelter costs are excluded, CPI growth in Phoenix and across the country is nearly identical, according to CSI.
Phoenix-area food prices increased 2.2% year-over-year in June. The local index excluding food and energy rose 2%, while the comparable national index increased 2.6%. CSI separately calculated that the Phoenix index for all items excluding energy increased 2% from the previous year, up from 1.7% in April.
Among the 23 metropolitan areas compared by CSI using the latest available BLS data, Phoenix recorded the fifth-slowest year-over-year inflation rate. The region had posted the fourth-slowest rate among the 14 metropolitan areas reporting April figures.
The recent slowdown follows several years of substantial price increases. CSI calculated that Phoenix-area prices have risen 33.4% since June 2019, compared with a 30.3% national increase. According to the institute, the increase is “adding approximately $1,673 in monthly expenses to the average Arizona household.”
From June 2024 through June 2026, cumulative Phoenix-area inflation was 3%, below the approximately 4% increase that would result from prices growing steadily at an annual rate of 2%, according to CSI.
CSI cautioned that changes in individual categories can have an outsized effect on the headline CPI because the index is a weighted average of price movements across goods and services. CSI identified volatile energy prices as a significant driver of both the local and national figures and estimated that alternative measures place the Phoenix area’s underlying inflation rate closer to 2% than the 2.8% headline figure.
Arizona taxpayers can’t catch a break from their local governments. From water rates and utility bills to property taxes and sales taxes, city councils have spent the last several months approving one increase after another. No matter the justification, the result is always the same: higher costs for the people paying the bills.
Here are some of the top offenders of the last couple of months:
Florence
In the Town of Florence, the town council approved a multi-year water and wastewater rate hike plan that starts with roughly 6–8% increases but compounds over several years into what many residents estimate will amount to around a 64% increase in total utility costs. At a time when families are already struggling with affordability, approving rate hikes of that magnitude is a serious burden on Florence residents. With increases that steep, one would think they’re trying to compete with Gilbert (100%+ increase over 3 years). The increases will start on July 1st, just in time for summer, so get your pocketbooks ready, Florence residents.
Tempe
Tempe has their own slew of problems that deserves an article of its own, self-imposed by mismanagement, obviously. The Tempe City Council recently voted on sending a 0.5% sales tax increase to the ballot for voters in November. This will tax all non-grocery food and is said to give 0.3% to public safety, 0.1% to transit such as light rail and buses and 0.1% to Tempe PRE, a city run free preschool.
As usual, local leaders are putting all blame on the legislature. One Tempe councilmember said, “Let me remind you what we set out to do with this initially: to address a … deficit that was created not by us but by the Arizona Legislature and the federal government.”
Meanwhile, this is occurring while the council has decided on things like a $2 million “Mill Ave” sign. Just plain, silver metal. Nothing special or aesthetic and $2 million is going towards this thing? Right, and it’s the legislature’s fault that they are in a budget deficit of about $24 million. It’s almost as if they didn’t spend your tax dollars on stupid things, they wouldn’t need to keep raising taxes…
For more than 50 years, 89-year-old Robert Young has owned the historic Louis Emerson House. He was married on its front steps, and to him it is a priceless vestige of pre-statehood Arizona.
But Arizona State University (ASU) intends to force Young to put a price on his memories and Arizona history. ASU wants to build a new headquarters for ASU Health and a new AI-driven medical school, and Young’s home is in their way.
The Louis Emerson House predates Arizona’s statehood by a decade. It was built in 1902, and has a historic designation with the Phoenix Historic Property Register. Clark Churchill — adjutant general and attorney general for the territory of Arizona in the late 1800s — developed the property in 1888. Much of this history was recovered by Young, who told 12News that he’s spent much of his 50 years as the house’s owner preserving its history.
“I would describe it as being one of a kind, because Clark Churchill decided that he was going to have an important connection with a street railway right here; it was called the ‘Brill edition,’” said Young.
The home’s namesake, Louis Emerson, was a butcher with Phoenix’s Palace Meat Market. Emerson lived in the home with his wife, Clara, until his death in the 1920s. Clara remained there until the early 1930s. That’s what Young told the Arizona Republic in a 2013 feature on his home, along with his belief that at least two others may have lived there prior to the Emersons.
ASU has offered Young about $800,000 to sell, but Young denied. Young has said he may be open to an offer that could cover the costs to have the house relocated, which he said would cost between $2 million and $3 million.
“You can’t get back history,” Young told the State Press. “You can’t recreate a historical treasure.”
Following Young’s refusal, the Arizona Board of Regents (ABOR) filed an eminent domain lawsuit with the Maricopa County Superior Court to force Young to take the money.
ASU said in a statement that they issued several offers to Young based on an “experienced, state-certified appraiser,” some of which included options for moving the home, but didn’t offer further details.
The city of Phoenix has invested $50 million into the ASU Health development, though city officials have said in statements to the media that ASU’s proposal to them didn’t include Young’s house.
ASU Health will span 200,000 square feet and house the John Shufeldt School of Medicine and Engineering, which the university says is “a new kind of medical school” teaching the prioritization of data in medical decision-making, and blending medicine with engineering, technologies such as artificial intelligence, and humanities.
ASU plans to open ASU Health in the fall of 2028.
Over 3,700 community members have signed an online petition to save Young’s home as of this report, endorsed by Preserve Phoenix, city of Phoenix’s Historic Preservation Office, and Phoenix Historic Neighborhoods Coalition.
A hearing on the fate of the Louis Emerson House is scheduled for June 19.
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Las Vegas may market itself as “Sin City,” but new 2026 data reveals it doesn’t even crack the top five when measuring where Americans actually live their most indulgent lifestyles.
A comprehensive study commissioned by PokerTube analyzed nightlife density, adult entertainment venues, single population rates, STI prevalence, and excessive drinking through a weighted index — offering one of the clearest looks at America’s true party capitals.
New York City claimed the top spot with a commanding composite “sin” score of 8.85/10. New York City overwhelmed competitors with 3,822 bars and 422 nightclubs (the highest totals nationwide) plus 79 adult stores. Nearly 46.8% of men and 44% of women are single, and the city logged a chlamydia rate of 558.4 cases per 100,000 residents.
Phoenix, Arizona, delivered one of the biggest surprises of the study, ranking second place nationally with a “sin” score of 8.77/10. Phoenix stands out with 925 bars and 122 nightclubs. Phoenix also features 46 adult stores, 11 casinos, and one of the higher excessive drinking rates in the top 10 at 18.81%.
Public health data paints an equally intense picture with Phoenix recording 552.5 chlamydia cases and 296.6 syphilis cases per 100,000 residents. With 44.65% of men and 37.52% of women single, Phoenix has earned its reputation as a major nightlife and entertainment hub.
Tucson, Arizona, ranked 15th on the list with a score of 7.96/10. It has 245 bars, 21 nightclubs, 7 casinos, and 46 adult stores. Tucson shares the same elevated state-level STI rates (552.5 chlamydia and 296.6 syphilis per 100K) and excessive drinking rate (18.81%), with 48.05% of men and 41.72% of women single.
Las Vegas fell to 7th place with a score of 8.48/10, despite leading the nation in casinos (292) and posting a strong number of strip clubs (17). Researchers noted that Vegas appears built more for tourism than resident-driven sin, with lower single-resident percentages (39.51% single men and 34.02% of single women) and more moderate excessive drinking rates (14.89%) compared to the top cities.
America’s Top 5 Most Sinful Cities (2026):
1. New York City, NY (8.85): 3,822 bars, 422 nightclubs, 79 adult stores, 558.4 chlamydia rate per 100k, 17.51% excessive drinking.
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.
