Phoenix led the nation in inflation in 2022, but rise may slow in 2023 - Phoenix Business Journal

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In Arizona, the biggest increases came in the price of gas. phoenix

By Haley Smilow – Cronkite NewsWASHINGTON – After a year in which the Valley saw the nation’s highest inflation rate for metro areas, experts say consumers can expect inflation to ease in 2023 – but warn that it’s not going away entirely.

Mark Stapp, a professor at Arizona State University’s W.P. Carey School of Business, said shelter accounts for one-third of the consumer price index, which is why Arizona is facing such high inflation rates. “The major reason why Phoenix’s inflation rate is running so much faster than the national average, is what’s going on in the housing market,” Hammond said. “Housing is by far the biggest single category in the price index, so it has a huge influence on what happens.”

Dennis Hoffman, an economics professor at the Carey School, said transportation costs play a large role in inflation for a sprawling area like Phoenix. Another increase that hit home for consumers was the price of food, which was up by 12.6% over the year, led by a 16.4% increase in dairy products, according to the BLS.

But the economists believe that things may be turning around and that the high prices will slowly decrease over the next couple of months. Stapp noted that gas prices have already fallen and he expects the same should happen with housing.

 

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Fonte: CBSNews - 🏆 87. / 68 Consulte Mais informação »