Prices go up while wages go down for Arizonans, according to figures

Inflation remains stubborn as AZ wages go down

The cost of living is rising while Arizona wages are down 3%, and people are cutting back on basic groceries and dining out. FOX 10's Ashlie Rodriguez has more.

PHOENIX - From groceries to gas and housing, the cost of everything is up, but Arizona is facing another problem alongside inflation.

By the numbers:

At its peak, pandemic inflation was at 9%. But efforts to rein in supply shortages stabilized the spike. Now, recent policies under the Trump administration, from the war in Iran to tariffs, are working in direct opposition to bringing prices down.

The inflation rate stood at 3.8% in April, the highest level shoppers have seen since 2023. Meanwhile, wages across the country are stagnant and slowing, unable to keep up with surging energy prices.

In the Grand Canyon State, wages are down as well. Over the long term, that is a recipe for recession.

Local perspective:

Chris Stagner is making ends meet by delivering for DoorDash. The restaurant-ready food is now a luxury expense he cannot afford.

"I’ve been really cutting back to not eating out at all," Stagner said.

On the same street walks Mike Taylor, whose grocery bags are smaller than usual.

"I bought 80/20 hamburger, instead of 93% fat free," Taylor said. "I got only one can of beans and I only got one bag of coffee."

"I got six dollars more in two years and inflation is costing a lot more than that so I scaled back," one person said.

"I feel like I been trying this whole time but no opportunities ever came, you know?" another person said.

Dig deeper:

Uncertainty in the economy is met with growing anxiety about AI’s impact on finding a job or higher wages.

"People are really fed up. The wage gains are not keeping up, inflation is really accelerating. And those gas prices and grocery prices are continuing to eat up household budgets," Groundwork Collaborative Chief of Policy and Advocacy Alex Jacquez said.

Economists say they expected the inflation, but wages dipping down nearly 4% nationally and in Arizona, according to the latest numbers, is compounding the crisis.

"The story may actually worse," said Dennis Hoffman, a professor with Arizona State University's W.P. Carey School of Business. "People at the high end of the income spectrum are doing really well, so that pulls up the average. But that just means that people in the lower 60% of families are actually doing worse."

What's next:

Experts say these high prices and the surging cost of fuel could last anywhere from six to 12 months.

"We need to get through this. We need to reverse some of these policies. We need to get the Strait open, and we will survive this episode," Hoffman said. "For folks looking for an end to this pain, it’s not in sight yet."