If you live in these states, you’re feeling the pinch of inflation the most

The Federal Reserve has been struggling to bring inflation back down to the 2% range after price increases soared in the wake of the covid-19 pandemic. The latest year-over-year figure was 2.7% in July according to the US Bureau of Labor Statistics.

While the national average was 2.7%, the Pacific region saw prices rise at an even faster clip of 3.27% year-over-year from July 2024 to July 2025 according to data collected by Common Sense Institute Oregon. The region consists of California, Oregon and Washington, as well as Alaska and Hawaii.

How inflation in the Pacific region compares to the national average

The average household in the Pacific region has spent almost $46,339 due to inflation compared to 2020 spending levels. Housing and transportation made up over half of the increase.

Price increases in the following categories have outpaced the national average:

Fed open to rate cut as hiring slows

Federal Reserve Chair Jerome Powell recently indicated that policymakers at the central bank are open to lowering interest rates, due to concerns about a weakening job market. “The shifting balance of risks may warrant adjusting our policy stance,” he said during a speech on Friday.

However, he did not indicate the timing of any such action. The central bank is closely monitoring the situation and will meet three more times this year.

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