New Insights Reveal Phoenix Metro’s Inflation Rate Remains Below Target Levels

In a recent analysis by the Common Sense Institute (CSI) Arizona, the Phoenix metro area’s inflation rate has remained below the 2% mark for six consecutive months. As of February, the year-over-year inflation in the region stands at 1.8%, contrasting with a national rate of 2.8%, which has seen a decrease since the tenure of President Donald Trump.

The report identifies the rising costs of shelter as the primary contributor to inflation, which increased by 0.7% in February and saw annual shelter costs rise by 1.2%. CSI Arizona highlighted on social media that Phoenix is “outperforming most of the country” in managing rising prices.

Interestingly, among 23 metropolitan areas tracked by the Consumer Price Index, Phoenix ranks 22nd in year-over-year inflation, marking a significant shift from 2022-2023 when it ranked among the highest.

CSI noted that national inflation trends often follow the federal deficit by a lag of approximately 12 to 24 months. While local inflation rates can vary due to regional dynamics, they typically align with national trends. In December, Fox 10 reported a 3.5% rise in homelessness statewide since 2023, affecting over 14,000 individuals.

Nathan Smith, CEO of Central Arizona Shelter Services, commented on the ongoing crisis, stating, “The cost of living continues to outstrip what people are making, and we’re at a bit of an inflection point here in Arizona, facing the highest eviction rate we’ve ever had.”