Annual inflation remains high in metro Phoenix, but rate slows
Nov 10, 2022, 1:20 PM
PHOENIX – The annual inflation rate in metro Phoenix slowed last month for the first time in over a year, but the Valley remains a national hot spot for rising prices, according to federal statistics released Thursday.
While consumer prices increased 7.7% nationwide in the past year, the Phoenix area saw a 12.1% surge, according to U.S. Bureau of Labor Statistics data for October. Local inflation was 1.4% from August to October.
Phoenix had the highest annual inflation of the metro regions for which October data was made available. The Atlanta and Miami areas also saw double-digit annual increases.
The BLS releases inflation statistics for the Valley every two months. The previous report, for August, showed a 13% year-over-year rise in local consumer prices. October was the first time since August 2021 when the rate was lower than the previous report.
When the volatile food and energy categories are taken out of the equation, Valley prices increased 11.1% since last October and .9% since August. Used vehicle prices dropped by 5.8% in the last two months.
The national numbers were lower than economists had expected.
Even amid a tentative easing of inflation, the Federal Reserve will likely continue raising interest rates to cool the economy and stem inflation. Yet Thursday’s news raised the possibility that the Fed could at least slow its rate hikes — a prospect that sent U.S. markets soaring.
Lorie Logan, president of the Federal Reserve Bank of Dallas, said Thursday’s figures “were a welcome relief,” but added “there is still a long way to go.”
The Associated Press contributed to this report.