Metro Phoenix facing worse inflation than the rest of America
(The Center Square) – Inflation is high in the United States, but it’s even higher in the Phoenix metropolitan area.
Consumer prices have risen 7.9% in the U.S. over the past 12 months – the highest rate in more than 40 years. However, in the Phoenix metropolitan area, consumer prices rose by 10.9%, a full three points higher than the rest of the United States, according to the Common Sense Institute.
It’s a problem that has gotten worse in recent months. Since October 2021, prices have increased by an average of more than 1% per month. Aspects of life that are getting more expensive include transportation, housing, food, and gasoline.
That said, the average household in the area spent an additional $4,462 more on food, housing, transportation, medical care, and other goods and services since the end of 2020.
Motor vehicle fuel and energy account for the most significant price increases at 44.0% and 29.6%, respectively. Additionally, rent in the Phoenix metro area has increased by 12.4% in the past 12 months. That’s 2.6 times the rate it has grown at in the United States, the Bureau of Labor Statistics reports.
The Common Sense Institute said people should expect the problem to worsen in the short term.
“Producer prices – which tend to lead consumer prices – are rising even faster than CPI, and the Ukraine crisis and American response to it are likely to put further pressure on commodity, energy, and gas prices,’ it wrote. “For these reasons, we believe further upward consumer price movement is likely over the next 3-6 months, rather than an easing.”
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