Here’s how inflation in Phoenix compares to the rest of the U.S.

Donald Trump re-won the White House partly because Americans are upset about inflation. But while inflation certainly wreaked havoc on families over the last four years, the idea that inflation is currently out of control is no longer really true.

It’s especially untrue in the Phoenix metropolitan area, which has experienced one of the lowest inflation rates in the country over the last year.

According to a study by nonpartisan think tank the Common Sense Institute, inflation in the Valley clocked in at 1.56%, more than a point lower than the national average of 2.6%. The data is from the monthly Consumer Price Index, which is released by the U.S. Bureau of Labor Statistics.

Prices in Phoenix also dropped from August to October, according to the report, while prices increased slightly nationwide. Driving the dip were decreases in shelter and energy costs.

“Inflation in Phoenix has been slower than the national average all year and it shows how strong the local economy is in getting inflation under control,” said Kamryn Brunner, a research analyst at the Common Sense Institute, adding that the institute expects that trend to continue through the rest of the year.

Phoenix used to be one of America’s inflation hot spots, experiencing spikes in the cost of housing, food and energy in 2021 and 2022. From the period of June 2021 to June 2022, Phoenix experienced 12.3% inflation, much higher than the national average of 9.1%.

Now, Brunner said, the Valley is an inflation oasis. Of the 23 urban areas tracked by Common Sense, Phoenix had the 4th lowest rate of inflation in the past year.

“Now it seems to be balancing out,” Brunner said. “Through all of this year, we’ve been running lower than the national average on inflation.”

That’s good news, but there’s still room for improvement. Common Sense’s study shows wages in Phoenix are still not keeping pace with even the area’s low level of inflation. As calculated by average hourly earnings, Phoenix wages are up 1.4%, lagging behind the 1.56% increase in inflation.

When voters in Arizona cited high inflation, this is what they might have meant.

“Prices are going up, and we’re going to feel that even more since wages are not outpacing inflation,” Brunner said. “So even if they’re both increasing and going in the right direction, if they’re not catching up to each other, we’re still going to feel that pinch.”


The report also underscored just how much inflation from the past four years has zapped Valley residents’ wallets. If inflation had remained steady at around 2% in Arizona since 2020, the average family would have saved $10,627 on expenses each year, a huge amount for working families.

So, even as inflation slows in Arizona, one thing remains clear: If whoever will be pulling on the levers of the economy really wants to help the working class, they still have lots of work to do.