Inflation in the Pacific Region -
January 2025
All of the data discussed in this report come from the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) database.i This source no longer produces estimates of price levels in Oregon nor any metropolitan area within Oregon, so this report references data from the Pacific region (Alaska, California, Hawaii, Oregon, and Washington.) ii
Inflation Rebounds in the Pacific Region
In the Pacific region, inflation remained broadly in line with national trends, with notable increases in housing, food, and transportation costs. Over the past year, inflation in the Pacific region followed a clear trajectory—year-over-year inflation peaked at 4.09% in April 2023, reflecting price changes over the previous 12 months, before steadily declining to a low of 2.30% in August 2024. Since then, year-over-year inflation has been gradually rising again, reaching 2.83% in January 2025.
The Pacific region had the second-highest monthly inflation rate among the six broad U.S. regions. This elevated inflation could put additional pressure on Oregon’s state budget, particularly since Oregon has no sales tax. With rising costs in key areas such as housing and transportation, the state may face increased spending demands without the offsetting revenue boost that sales tax can provide.
Prices in the Pacific region increased by 0.69% from December 2024 to January 2025, in line with the national figures. Year-over-year, regional prices rose by 2.83% through January 2025.
Key Takeaways:
- Inflation in the Pacific region remained below the national average, rising 2.83% year-over-year compared to 3% nationwide.
- Over the past two months, regional prices rose 0.69%, matching the national trend.
- Transportation and services saw the sharpest price increases, while energy and durable goods experienced the steepest declines.
Sectoral Price Changes
The inflationary environment has cost the average household in the Pacific region nearly $38,717 compared to 2020 spending levels, with housing and transportation accounting for half of this increase.
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From January 2024 to January 2025, the largest price increases were seen in:
- Transportation (4.1%) and services (4.1%), followed by food (3.35%), medical care (3.20%), and housing (3.17%).
- Energy (-1.99%) and durable goods (-2.07%) experienced the sharpest price declines.
The Pacific region saw above-average yearly price growth in:
- Transportation (4.1% vs. 1.03%)
- Services (4.10% vs. 4.07%)
- Fuels and utilities (5.70% vs. 3.35%)
- Commodities (0.46% vs. -0.04%)
Meanwhile, housing prices increased at a slower rate (3.17%) compared to the national average (3.79%).
i https://www.bls.gov/cpi/
ii Starting with the release of January 2025 data in February 2025, the BLS discontinued several indexes and average price series. Among them, the index for fuels and utilities is no longer available at the regional level, including for the Pacific region. Therefore, in this report, fuels and utilities data is reported only through December 2024.
iii The U.S. Bureau of Labor Statistics (does not provide seasonally adjusted Consumer Price Index data for the Pacific region; therefore, this report utilizes non-seasonally adjusted figures for regional analysis.