No one likes paying more for less. But if you live in metro Phoenix, you\u2019re doing just that.<\/p>\n
Inflation here is higher than anywhere else in the country, according to a recent study from the Common Sense Institute, a nonprofit, nonpartisan think tank based in Phoenix.<\/p>\n
Inflation hits all Americans, but none more than the Arizonans who have faced an unprecedented 10.9 percent spike in prices over the last 12 months \u2014 3 full points higher than the rest of the nation.<\/p>\n
\u201cIt\u2019s impacting the typical household significantly,\u201d Jim Rounds, an economic analyst based in Tempe, told Phoenix New Times. \u201cThis is close to the worst it\u2019s going to be.\u201d<\/p>\n
In February 2021, a gallon of gas in Arizona cost $2.25. Today, it\u2019s $4.63, more than double, according to AAA.<\/p>\n
\u201cThe gas price issue is a real problem,\u201d Rounds said. \u201cIt impacts when you buy milk or cheese because those items have to be transported.\u201d<\/p>\n
Yet it\u2019s not just fuel prices that are on the rise, trickling beyond the gas pump onto the shelves of grocery stores.<\/p>\n
Remember when a gallon of milk cost $1.98 in Phoenix last year? Today, Valley residents are not likely to to get a gallon of whole milk for their Apple Jacks for less than $3.26, according to the U.S. Department of Agriculture\u2019s March report.<\/p>\n
Inflation is a growing problem in metro Phoenix.<\/p>\n
Since October, prices for everyday necessities have jumped by at least 1 percent every month.<\/p>\n
Phoenix lends itself to unprecedented inflation because of its rapidly growing economy, Rounds said. Stronger economic growth leads to greater demand for products.<\/p>\n
That doesn\u2019t bode well for Valley residents as businesses continue struggling to move food, beverages, apparel, and sundries to consumers amid spiking fuel prices and a shortage of shipping containers, among other snags.<\/p>\n
\u201cA high-growth region like greater Phoenix is under more pressure to deliver to consumers,\u201d Rounds said. \u201cBut right now, it can\u2019t.\u201d<\/p>\n
It all started with the pandemic.<\/p>\n
Demand for gas, recreation, and services tanked as a mass exodus from the office corralled people at home in isolation. When people went back to work last year, demand returned to something resembling the pre-coronavirus norm.<\/p>\n
Supply, however, still lagged.<\/p>\n
\u201cCOVID still has an impact on what is happening now,\u201d Rounds said. \u201cIt is causing this lingering effect that\u2019s hitting the pocketbooks of every household in Arizona.\u201d<\/p>\n
Inflation has an outsized effect on low-income people, economists say.<\/p>\n
The average Valley household is spending an additional $4,462 on food, housing, transportation, medical care, and other goods and services compared to just one year ago, according to the Common Sense Institute study.<\/p>\n
Since February 2021, all items have increased in price. Fuel is up 44 percent and energy is up 29 percent in Arizona, the study reveals.<\/p>\n
The study, citing the U.S. Bureau of Labor Statistics, also points out that housing costs have jumped more than 12 percent \u2014 close to three times greater than the rest of the nation.<\/p>\n