Is Inflation Easing? See How Phoenix Is Affected

PHOENIX, AZ — A new government report Wednesday shows inflation eased slightly in April for the country as a whole, but the most recently numbers available for the Phoenix area were not so positive.

Prices rose 11 percent compared to April 2021 in the Phoenix metro area, and 2.5 percent compared to February, according to the U.S. Bureau of Labor Statistics report.

Across the entire U.S., prices rose 8.3 percent this April compared to April 2021, and 0.3 percent compared to March, according to the report. The April-over-March increase in the Consumer Price Index was the smallest monthly increase in seven months.

The April-over-March increases for Phoenix were not yet available, as of Wednesday.

The biggest increases in the Phoenix area since February were for meats, poultry, fish, and eggs at 4.2 percent, home or apartment rent at 3.6 percent and fuels and utilities at 4.2 percent. Nationally, food prices were up 0.9 percent, including groceries, which rose a full percentage point.

Of particular note, dairy prices across the nation increased for the 17th consecutive month, up 2.5 percent from March, the largest increase for the dairy index since July 2007. Over the past year as a whole, grocery prices have increased 10.8 percent, the largest year-over-year increase since 1980.

But In the Phoenix area, dairy prices have actually decreased by 1.1 percent since February.

In the Valley, prices on staples such as cereals and bakery products rose 2 percent in the past two months, and the cost of fruits and vegetables went up 1 percent.

Gas prices, though still averaging a record $4.40 a gallon nationally and $4.70 in Arizona, fell 6.1 percent nationally from March to April, offsetting increases in the indexes for natural gas and electricity, according to the report. In the city of Phoenix, gas prices averaged $4.78 per gallon on Wednesday.

Overall, gas prices have increased 44 percent from a year ago, and data from AAA shows prices have steadily increased so far in May.

One month of data isn’t enough to show if inflation is headed downward, economists, note. And there are signs in the report that inflation is becoming embedded in the U.S. economy, The Associated Press reported.

When the volatile food and energy prices — driven higher by persistent COVID-19 pandemic supply chain issues and, more recently, Russia’s war in Ukraine — are taken out of the mix, the so-called core inflation on goods and services increased 0.6 percent from March to April, twice the 0.3 percent rise from February to March.

Core inflation rises more slowly, the AP explained, but can take longer to decline. For example, rent is rising at a historically fast pace, up 0.6 percent from March to April. Hotel costs are up, too, 1.7 percent from March to April, following a 3.3 percent increase from February to March.

Persistent inflation is a political problem for President Joe Biden, and a financial problem for many Americans, especially those on fixed incomes who are making tough choices at the grocery store and gas pump.

Patty Blackmon, who lives in Las Vegas, told the AP that $5.89-a-gallon gas prompted her to reduce the number of trips she makes to the grocery store and her grandchildren’s sporting events. She hasn’t decided if she’ll make a road trip to see relatives in Arkansas this summer, hasn’t visited her hair stylist in 18 months, and is buying more canned soup and salad ingredients at the grocery store.

“A steak is almost out of the question,” she told The AP.

The Associated Press contributed to this report.