August 12, 2026
All of the data discussed in this report come from the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) database. 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.)
Inflation Eases in the Pacific Region, but Household Costs Remain Elevated
Consumer prices in the Pacific region edged down between May and July 2026, although households continue to face substantially higher costs than a year ago. The Consumer Price Index for All Urban Consumers (CPI-U) in the Pacific region declined 0.16 percent over the two-month period. Over the 12 months ending in July, however, prices remained 3.1 percent higher, compared with a 3.4 percent increase nationally.
The modest decline in the overall regional index masks significant differences across spending categories. Energy prices in the Pacific region were 13.1 percent higher than a year earlier, transportation costs increased 6.0 percent, and food prices rose 4.2 percent. Food and transportation prices also increased faster in the Pacific region than nationally, keeping pressure on several major household expenses.
Core inflation, which excludes volatile food and energy prices has slowed considerably from a year ago. The Pacific region’s index for all items less food and energy rose 2.4 percent over the 12 months ending in July 2026, compared with 3.32 percent in July 2025. Core inflation has also remained below year-ago levels throughout most of 2026, indicating that price pressures outside the more volatile food and energy categories have moderated even as headline inflation remains elevated.
The CPI-U for the Pacific region declined 0.16% percent over the 2 months from May 2026 to July 2026. Over the 12 months ending in March, prices rose 3.1 percent, below the 3.4 percent increase in the U.S. city average.
Key Takeaways:
- Over the 12 months ending in July 2026, the CPI for the Pacific region rose 3.1 percent, below the national average of 3.4 percent.
- The Consumer Price Index for All Urban Consumers in the Pacific region declined 0.16% percent over the 2 months from May 2026 to July 2026.
Sectoral Price Changes
The inflationary environment has cost the average household in the Pacific region nearly $64,500 compared to 2020 spending levels, with Housing and Transportation accounting for nearly 60 percent of this increase.
From July 2025 to July 2026, the largest price increases were seen in: Energy (13.1%), Transportation (6%) and Food (4.2%).
The index of Durables and Education declined slightly on a year over year basis.
The Pacific region saw above-average annual price growth in:
- Food (4.2% vs. 3%)
- Recreation (3% vs. 2.6%)
- Transportation (6% vs. 5.8%)
From July 2025 to July 2026, price growth in the Pacific region was slower than the national average across several categories—Energy (13.1% vs. 14.7%), Apparel (3.7% vs. 3.9%) and Commodities (3.4% vs. 3.9%).
Notes:
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.
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.
