The Common Sense Institute released a report this week showing that Phoenix had its lowest metro inflation rate year-over-year from April 2024 to April 2025.
The report showed the city’s inflation increased by only 0.3%.
And April is the eighth consecutive month that Phoenix's inflation has been below 2%.
At the national level, year-over-year inflation is 2.3% from April 2024 to April 2025, the lowest since 2021.
But the economic news hasn't been entirely good in Phoenix, Arizona's capital and its largest city with a population of more than 1.6 million people. Phoenix’s inflation has increased 30.7% since April 2019, compared to the national average of 25.5%.
Housing costs have been the driver of Phoenix’s inflation, Glenn Farley, CSI’s director of policy and research, told The Center Square.
He said Phoenix’s inflation rate was above the national average after the COVID-19 pandemic, but that shifted 12 months ago when the city’s inflation started running below the national average.
The report says the city’s housing costs fell 0.1% from April 2024 to April 2025 .
Farley described Phoenix’s housing market as “frozen” since early 2024.
