A new study from Common Sense Institute Arizona reveals that Arizona’s rate of inflation has dropped to the national average after 29 consecutive months of running above it. Year-over-year price inflation for the last 12 months in Metro Phoenix is now at 3.7%, following a monthly inflation rate of .04% for the metro area in September.

LEARN MORE: Money saving hacks: 18 readers share their best tips

Since 2020, Arizona has led the nation with high inflation rates; the consumer price index (CPI) for the Phoenix Metro was more than 12% higher in October 2022 than it was in October 2021. 

The average Arizona household has to pay over $23,000 more per year compared to 2020 for the same goods and services, including food and beverage, housing, and transportation. That’s why Arizona now dropping down to the national average of 3.7% has analysts and business leaders hopeful that the worst is behind them.

“Arizona remains an affordable place to live and work when compared to our national competitors, but inflation is still too high,” CSI board member and Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. “Let’s hope this latest data is a sign that big spikes in costs are a thing of the past.”

Another bright spot in the data is that the cost of shelter actually decreased in September for the first time since the onset of accelerated inflation. For reference, the average monthly rent for a two bedroom apartment or home has increased by over $600 since August 2020, a 43.6% increase.

“Policymakers and the business community should continue to keep an eye on housing costs,” Seiden said. “We want to be able to continue to recruit job creators to Arizona and ensure that their employees will be able to find an affordable place to call home. If inflation is best described as too many dollars chasing too few goods, then we should work to increase the housing supply. A ‘Yes in my backyard’ posture by city leaders could put some much needed downward pressure on housing costs.”