Inflation at 40-Year High; Phoenix’s Surge Highest in the Nation
The country is dealing with extreme inflation, and Arizona is no exception. In fact, Phoenix is facing a price surge that is among the highest in the country. Take a closer look at the inflation issue, both locally and nationally.
How Phoenix’s Inflation Rates Compare to the Average
Recent data shows the national inflation rate is 9.1 percent. Meanwhile, the inflation rate in Phoenix is at 12.3 percent, making it among the highest inflation rates in the country.
There is a similar contrast in recent data from the Bureau of Labor Statistics on gas prices. From June 2021 to June 2022, gas prices rose nearly 60 percent nationally. In Arizona, however, they rose 77% percent.
Where Inflation Is Worse
Phoenix’s surge is not the highest inflation rate in the country – it comes in second place. The Anchorage, Alaska metro area beats it at 12.4%.
The Trend Was Apparent Months Ago
The most recent figures are only the latest showing that Arizona is leading the nation in inflation. April saw similar figures, with Phoenix leading the nation’s inflation surge.
The figures from February 2021 to February 2022 placed the Phoenix-Mesa-Scottsdale area as the leader in inflation. With an increase of 10.9 percent, it had the highest rate of large urban areas in the country.
Who Is Affected the Most
Low-income households are bearing the brunt of the impact of increased inflation. Those with moderate incomes still had room to make changes. They can adjust spending patterns to save money and accommodate inflation.
However, low-income families are already at the limits of their budgets. This is especially true given that housing accounts for 34 percent of the average Phoenix resident’s budget.
The plight of low-income families is especially apparent when you look at figures from the local food bank Nourish Phoenix. While the food bank sees about 100 families per day, that figure increased to 150 families per day in June.
The entire country is facing inflation, but it is hitting Phoenix especially hard. Inflation is affecting low-income families the most, as they have few or no areas to further restrict their budgets.