Are rising housing costs a key driver of inflation in Arizona?
By Ngan Nguyen
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YES
Housing and rental prices are a primary contributor to inflation, both in Arizona and nationally, according to the federal Bureau of Labor Statistics.
BLS’s Consumer Price Index, which measures changes in averages costs for key consumer goods, heavily weights housing costs in its calculations. That means spikes in home prices and rental costs can have a significant impact on inflation rates.
In the most recent CPI report from August 2022, housing and shelter inflation in the Phoenix Metropolitan Area were up 17.1% and 19%, respectively, driving up the state’s overall inflation rate.
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Sources
US Bureau of Labor Statistics Consumer Price Index, Phoenix area — August 2022
US Bureau of Labor Statistics Measuring Price Change in the CPI: Rent and Rental Equivalence : U.S. Bureau of Labor Statistics
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