The Common Sense Institute’s “Inflation Misery Index” said that inflation continues to have a stinging impact on Arizonans’ wallets.
According to the report, Arizonans spend $9,996 more each year compared to 2019. When adjusted for the usually expected 2% inflation yearly, it’s still a $6,276 difference. The report adds that 24% of the average Grand Canyon State’s household income was eaten up by inflation, or roughly $25,000.
“The prolonged period of high inflation has taken a serious toll on the financial stability of Arizona’s households,” Zachary Milne, Senior Economist and Research Analyst for CSI, said in a statement. “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 continues to outpace income growth, many Arizonans are facing tough financial choices to maintain their standard of living.”
Notably, the report says that housing and food have seen the biggest price hikes with $6,900 and $4,371 average increases, respectively. Other categories such as “recreation” and gas also had significant hikes over the past few years, and the misery index is considered to be at a much higher level than it was during the Great Recession in 2008 and 2009.
Inflation in the Phoenix Metropolitan Area cooled down to a 2.3% year-over-year increase as of August 2024. In Aug. 2022, inflation hit 13% year-over-year in Phoenix and slowly declined afterward, according to U.S. Bureau of Labor Statistics data.
Despite a much cooler inflation rate, the report dubbed it “insufficient” to make life more affordable alone, as the hit has already been taken with higher prices across the board.
