Phoenix consumer price index rises modestly through August; annual inflation remains low

William J. Wiatrowski, Deputy Commissioner at BLS
William J. Wiatrowski, Deputy Commissioner at BLS
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Consumer prices in the Phoenix-Mesa-Scottsdale area increased by 0.9 percent for the two months ending in August 2025, according to data released by 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 the two-month period.” The report also noted a decrease of 1.0 percent in the food index, while energy prices edged up by 0.2 percent.

Over the past year, consumer prices in the region rose by 1.4 percent. The index for all items excluding food and energy advanced by 1.7 percent over this period, with food prices rising by 1.0 percent and energy costs declining by 0.8 percent.

Breaking down recent trends, grocery store purchases decreased slightly (down 0.3 percent), while dining out saw a larger drop of 1.8 percent over the last two months measured.

Annual figures showed an increase of 1.5 percent for groceries and a rise of 0.9 percent for restaurant meals.

Energy costs recorded a small gain over two months (up 0.2 percent), but gasoline prices remained nearly flat (up just 0.1 percent). Over twelve months, both energy and gasoline prices declined by about 0.8 percent.

The core inflation measure—excluding food and energy—rose by 1.2 percent over two months, driven mainly by higher costs in education and communication (+3.5%), medical care (+2.8%), and shelter (+1%). New and used motor vehicle prices fell slightly (-0.2%).

Year-over-year core inflation was influenced most strongly by other goods and services (+6.2%) and recreation (+5%). Apparel (-2.3%) and shelter (-0.1%) were among components with lower prices compared to last year.

The next Consumer Price Index report for Phoenix is scheduled for release on November 13, 2025.

The Consumer Price Index measures average price changes paid by urban consumers on a fixed basket of goods and services, with local indexes such as Phoenix’s being published every two months as part of the national program run by BLS https://www.bls.gov/cpi/. These local indexes have smaller sample sizes than national ones, making them more volatile; they are not adjusted for seasonal influences or designed to compare price levels between cities.

Phoenix-Mesa-Scottsdale’s CPI covers Maricopa and Pinal Counties in Arizona.

For more information about methodology or technical details behind these figures, readers can consult resources like the national CPI news release technical note or BLS Handbook of Methods https://www.bls.gov/opub/hom/cpi/.



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