Prices in the greater Seattle area rose 4.9% over the past year, according to federal data released Tuesday, outpacing a national inflation rate that itself hit a three-year high of 3.8%.
The Bureau of Labor Statistics (BLS) reported that the region’s consumer price index climbed 1.3% over the past two months, well above the 0.6% national increase. The numbers reflect rising energy costs driven by the war in Iran, high housing prices, and a local job market that is starting to soften.
Energy, housing, and a cooling job market push Seattle’s inflation rate to nearly 5%
Energy is the biggest culprit. The Seattle-area energy index surged 23.7% year over year, with gasoline prices up 25.7% over that span, according to BLS. In just the two months ending in April, gasoline jumped 28.9%, pushing the broader energy index up 17.6%.
Food offered a rare bright spot, at least at the grocery store. Prices for food at home fell 1.2% over the two-month period, with four of the six major grocery categories declining. Overall, food prices rose 3.8% year over year.
Stripping out food and energy, core prices in the Seattle area climbed 3.8% annually, a full percentage point above the 2.8% national core rate. Shelter, the index’s heaviest component, rose 2.4% over the year. Recreation costs jumped 8.1% year over year, among the steepest category gains. Apparel was one of the few categories to fall, dropping 4.4% over two months.
Meanwhile, the Federal Reserve held its benchmark rate in the 3.50%-3.75% range last month. Tuesday’s numbers make near-term rate cuts unlikely. The next national Consumer Price Index report is scheduled for June 11.
This story was originally posted on MyNorthwest.com
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