Arizona’s ‘Inflation Misery Index’ Soars to New Heights

By Matthew Holloway |

A newly released report from the Common Sense Institute Arizona (CSI), entitled the “Inflation Misery Index,” highlights the escalating cost of living in Arizona. This analysis emphasizes the burden on families since 2019, illustrating a staggering 24% rise in necessary spending to maintain the same standard of living post-COVID. The report draws attention to the financial pressures residents face due to rampant inflation attributed to current economic policies.

Zachary Milne, Senior Economist and Research Analyst at CSI, stated, “The prolonged period of high inflation has taken a serious toll on the financial stability of Arizona’s households. Our findings highlight not only the immediate increase in costs for essential goods and services but also the long-term decline in purchasing power.” As inflation outstrips income growth, many residents are forced to make difficult financial decisions.

Data from the report indicates that over the past 43 months, Arizona households have experienced a 24% decline in purchasing power, equating to a nearly $25,000 decrease in income. This troubling trend raises concerns about the economic stability of families across the state.

CSI meticulously calculates these figures by using 2019 as a baseline for comparison, negating the effects of government stimulus and inflationary spikes that occurred post-pandemic. This approach allows for a clearer understanding of real inflation impacts on everyday expenses.

The report details that Arizonans now need to spend an additional $9,996 annually to procure the same amount of goods and services as in 2019. Specifically, households now face significant increases in various categories: housing and utilities have surged by $6,900, food prices are up by $4,371, recreational costs have risen by $1,189, and fuel expenses have increased by $772.

CSI cautions that recovering lost purchasing power will require a sustained period of normal or below-average inflation rates combined with strong income growth. Their analysis contrasts sharply with the White House’s assertion of slowing inflation, underscoring that mere deceleration does not mitigate the damage already inflicted.

For Arizonans, everyday expenses are becoming increasingly burdensome. Personal Consumption Expenditures per capita rose by 7.2%, translating to $27.1 billion in 2023. This led to increased spending of 12.1% on rent and 9.5% on health care, marking Arizona as one of the states with the fifth highest percentage increase in consumer spending.

In response to the findings, Congressman David Schweikert (R-AZ) reiterated the financial challenges faced by many Arizonans, pointing out these stark statistics through the Congressional Joint Economic Committee Republicans. The data reflects a broader narrative of economic unease as families strive to navigate rising costs in essential sectors.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.