The U.S. inflation rate hit a 40-year high after the pandemic but has since cooled significantly due to factors like the Federal Reserve rate hikes. The year-over-year inflation rate sits at 2.7% as of June 2025, which is the highest since February. Various factors, such as the war in Ukraine, labor shortages and recent tariffs, drive this higher than average inflation. Despite the country not meeting its target yet, the Federal Reserve will keep interest rates at the level set in December 2024. And with that, Phoenix is the city with the lowest inflation problem, according to an analysis from Wallethub .

LOCAL NEWS: 100 best places to work and live in Arizona for 2025

INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here

Inflation rates differ across t

See Full Page