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    • Phoenix’s inflation rate rose more slowly than the rest of the country in October
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    Phoenix’s inflation rate rose more slowly than the rest of the country in October

    Online Niel Posted on

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    Inflation in metro Phoenix continues to rise at a slower pace than national inflation, with prices here rising 1.6 percent in the 12 months through October.

    That figure, reported by the Bureau of Labor Statistics, compares with a 2.6 percent U.S. inflation rate, also for the 12 months through October.

    Phoenix’s October rate was the lowest of the 14 large U.S. cities tracked.

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    Metro Phoenix inflation over the past two months actually fell 0.1% through October. According to BLS Regional Commissioner Chris Rosenlund, lower housing and energy prices were important factors that explained the moderation in the inflation rate here.

    The latest figures do not indicate that prices for many items are cheap, but rather that the rate of change has relaxed here.

    “We have very welcome news on the inflation front, with rates down 1.6 percent year over year,” said Dennis Hoffman, an economics professor at Arizona State University. “While much of the decline is attributable to much lower gas prices, there is also a noticeable softening in commodity prices,” along with some recent relief for renters, he said in a statement to The Arizona Republic.

    Hoffman said other data indicated that private sector wage gains have been strong of late, “giving consumers a much-needed boost in real purchasing power over the past year.”

    Metro Phoenix briefly had the highest major city inflation rate in the country at 12.3% in June 2022but the rate here has moderated considerably since then. Among 14 large cities tracked by the BLS in October 2024, Phoenix’s 1.6 percent annual rate was the lowest. The highest rate was 4 percent in the New York area.

    Several major categories of inflation have risen over the past 12 months, but moderately. Food prices rose by 1.5% over the past 12 months. But energy prices fell 11.9 percent, largely reflecting a 25.4 percent drop in gasoline prices, the BLS said. At present, Metro-Phoenix gas averages about $3.17 a gallon, according to AAA.

    Among other metro-Phoenix inflation categories cited by BLScereals and baked goods rose 3.2% in the year to October, restaurant meals rose 2.4%, health care rose 9.2% and electricity was 8.5% higher . However, dairy products fell 2.9%, new vehicle prices fell 1.9%, used vehicles fell 2.5%, and education/communications costs fell 1%.

    Contact the writer at [email protected]

    Online Niel
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