Phoenix consumer prices rise modestly; annual inflation remains below national average

Chris Rosenlund, Regional Commissioner at U.S. Department of Labor, Bureau of Labor Statistics - LinkedIn
Chris Rosenlund, Regional Commissioner at U.S. Department of Labor, Bureau of Labor Statistics - LinkedIn
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The Consumer Price Index for All Urban Consumers (CPI-U) in the Phoenix-Mesa-Scottsdale area increased by 0.9 percent over the two months ending in August 2025, according to a report from the U.S. Bureau of Labor Statistics. Regional Commissioner Chris Rosenlund stated that the index for all items less food and energy rose 1.2 percent during this period. The food index decreased by 1.0 percent, while the energy index saw a slight increase of 0.2 percent.

Over the past year, the all items CPI-U for Phoenix rose by 1.4 percent. The index for all items excluding food and energy went up by 1.7 percent year-over-year, while the food index increased by 1.0 percent and the energy index declined by 0.8 percent.

In detail, the food index dropped by 1.0 percent in the last two months, with grocery store purchases down by 0.3 percent and restaurant, cafeteria, and vending purchases declining by 1.8 percent.

For the annual period ending in August, grocery store prices increased by 1.5 percent and eating out rose by 0.9 percent.

The energy index showed a small rise of 0.2 percent over two months, mainly due to gasoline prices increasing slightly by 0.1 percent.

Year-over-year, gasoline prices fell by 0.8 percent along with the overall decline in the energy index.

Prices for all items less food and energy increased by 1.2 percent during the two-month period, with notable rises in education and communication (+3.5 percent), medical care (+2.8 percent), and shelter (+1.0 percent). New and used motor vehicles saw a decrease of 0.2 percent.

Over twelve months, other goods and services were up by 6.2 percent and recreation increased by 5.0 percent within this category; apparel prices fell by 2.3 percent and shelter was down slightly at -0.1 percent.

The next release of the Consumer Price Index for Phoenix is scheduled for November 13, 2025.

The Consumer Price Index measures average price changes over time in a fixed basket of goods and services and is published bi-monthly for Phoenix as part of national data collection efforts; local indexes like Phoenix’s are more volatile due to smaller sample sizes and are not seasonally adjusted or designed to compare price levels between cities.

The metropolitan area covered includes Maricopa and Pinal Counties in Arizona.

“Regional Commissioner Chris Rosenlund noted that the index for all items less food and energy rose 1.2 percent during the two-month period.”

A full history of all-items data series can be accessed through BLS data query tools provided in Table 1 under historical data on their website.

Information from this release can be made available to individuals with sensory impairments upon request via voice phone or Telecommunications Relay Service.



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