PHOENIX — According to the Federal Bureau of Labor Statistics, Phoenix-Mesa-Scottsdale have the highest inflation rate, at 13%, in the country.
Nearly everything costs more nowadays such as groceries, gas, rent, and as contractor Tony Brazza said on his way to the grocery store, the cost of doing business, "We have to raise our prices for our customers to make up that difference now. Everything is becoming more expensive."
According to Zillow, the housing prices in Scottsdale and Phoenix rose more than 22% for the year ending in July.
Economist Jim Rounds says that is why our inflation rate is higher than anywhere else.
"Housing prices have gone up but it's also we're a faster-growing state. States that grow more rapidly are going to have pressure in the housing market and other areas," Rounds said.
While housing prices are beginning to stabilize, interest rates are going up, making it difficult for people to buy.
Economist Jim Rounds says he can see better days coming, just not immediately.
"Unlike some prior periods, we're not going to see prices come down as rapidly. I think while we may be in a recession in 2023, I don't see us having recession-level prices during that period. I'm thinking 2024 when we start to see things normalize."
Rounds says if you take away housing, our inflation rate is on par with the rest of the country.
The difference is our economy is stronger than most states. If a recession comes, as Rounds believes it will, it may not last long before the economy reboots.
