Here’s how Phoenix inflation compares with rest of U.S.

Sourced By: AZ Big Media 

Inflation, measured by the all-items Consumer Price Index for All Urban Consumers (CPIU), in the Phoenix MSA decelerated in June to 4.4% over the year. That was down from a peak of 13.0% in August 2022 but still above the nation at 3.0% (Exhibit 1). The national rate peaked at 9.1% in June 2022.

Keep in mind that the all-items inflation rate is a weighted average of price changes for goods and services purchased by U.S. urban residents. It includes sales and excise taxes. The importance of a given good or service in a price index is determined by its share of an average household’s budget.

Part of the reason that all-items inflation has come down recently is because commodity inflation has softened significantly. The commodities CPIU for the Phoenix MSA declined by 1.4% over the year in June and the national average dropped by 1.2%. The Phoenix rate is down from a peak of 14.7% in June 2022. The national rate was down from a peak of 14.2%. As Exhibit 2 shows, commodities inflation in Phoenix has been fairly similar to the U.S. Commodities in the CPIU includes tangible products like gas, food, apparel, appliances, furniture, etc. Commodities make up a relatively small share of an average household’s budget.

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