(The Center Square) – Inflation in the Phoenix metropolitan area appears to be calming down, according to new Consumer Price Index data from February.
The CPI saw an uptick of 2.2% year-over-year from last February, and a 0.7% increase between December 2023 and this February. That’s lower than the nationwide year-over-year rate of 3.2%.
However, inflation is coming down from very high levels in the metropolitan area.
The Phoenix metro used to have the highest rate nationwide, with the year-over-year rate hitting 13% in August 2022, according to the Arizona Republic. It continued to remain high throughout the end of 2022, The Center Square reported at the time.
Glenn Farley, Common Sense Institute Arizona’s director of policy and research, said that inflation remains a concern.
“Inflation in the greater Phoenix area remains below the national rate – a welcome change from 2022 and early 2023, when we were among the fastest growing regions in the country in terms of prices,” Farley told The Center Square in a statement.
“Still, though, inflation remains hotter than it should be by now, and especially at the national level, is flat since mid-2023,” he added.
The institute’s inflation report determined that costs such as rent, gas, and eating out have seen major increases since December 2020, which they say reduced the purchasing power of a “typical Arizona family” by $11,200 a year than if inflation kept at a stable 2%.
Farley also explained the role the Federal Reserve Board plays when it comes to wrangling the American economy.
“The Federal Reserve Board has maintained that it takes time for monetary policy to work; six months is a long time to wait. It is clearly too soon to entertain lowering interest rates, and that means three rate cuts probably aren’t happening this year as planned,” he stated.
The U.S. Bureau of Labor Statistics uses the CPI to determine inflation by examining the cost of items typically purchased by Americans.