MONEY

Washington part of region seeing inflation above national average

Aug 21, 2025, 2:28 PM | Updated: 2:31 pm

inflation washington...

Customers shop at a local grocery store. Inflation remains higher than the national average in the Pacific region. (Photo courtesy of KIRO 7)

(Photo courtesy of KIRO 7)

The cost of living in the Pacific region, which includes Alaska, California, Oregon, and Washington, remains high.

Inflation in the Pacific region continued to surpass the national average in July 2025, according to a report from the Common Sense Institute Oregon.

From July 2024 to July 2025, the Consumer Price Index for All Urban Consumers in the Pacific Region jumped 3.27%, compared to 2.7% annually.

The average household in the Pacific region has spent thousands more since 2020 due to inflation — $7,146 more on food, $11,380 more on housing, $13,801 more on transportation, and $2,246 more on medical care. That brings the total to $46,339 more spent due to inflation.

From July 2024 to July 2025, every category the Common Sense Institute Oregon studied increased in price except for apparel, which was down 0.3%. The highest category was medical care, which rose 4.6% in price from July 2024 to July 2025. Services were up 4.1%, housing increased by 3.7%, and food rose by 3.6% in the same period.

However, the year before, from July 2023 to July 2024, nearly half of the categories showed a decrease in inflation.

Pacific region sees strong housing demand

Mark McMullen, vice president of policy and research at Common Sense Institute Oregon, attributed the housing inflation to a lack of new homes and more demand, according to The Center Square.

“Just given the demand for housing in the region, and the supply constraints in terms of less building activity than we have seen elsewhere in the country, traditionally the housing costs have gone up faster in the west than other places,” he told The Center Square.

However, McMullen noted California heavily impacts the data collected in the Pacific region because the state has the largest amount of sales.

Seattle home prices were up 10% in June 2025 compared to last year, according to Redfin — the highest in the past five years.

The median sale price of a home in Seattle was $935,000 in June, while the month before it was $895,000.

Over the past few years, median sale prices tended to drop around January and pick back up during the summer, as shown on Redfin’s chart from 2021 to 2025. The lowest median home prices seen during that period were in January 2022.

Follow Julia Dallas on X. Read her stories here. Submit news tips here.

Money

bob ferguson governor salary...

Frank Sumrall

Panel adopts proposed 2-year salary freeze for Gov. Bob Ferguson; final vote in February

Washington Governor Bob Ferguson won’t get a pay raise for the next two years.

6 days ago

SNAP fraud...

James Lynch

Man accused of $600,000 SNAP fraud returned to WA after fleeing to India

A man accused of diverting about $600,000 in federal food assistance benefits for personal gain has been returned to Washington.

7 days ago

King County homelessness agency...

Aaron Granillo

Review finds nearly $17 million shortfall at King County homelessness agency

Seattle and King County taxpayers face a nearly $17 million bill to cover a funding shortfall at the King County Regional Homelessness Authority.

7 days ago

generic prescription drugs...

Frank Lenzi

Bought generic prescription drugs between 2009 and 2019? You could get money back

If you bought generic prescription drugs between 2009 and 2019, you could be getting some money back.

8 days ago

A person sits at the slot machines on the casino floor. (Photo: Octavio Jones, Getty Images)...

Jason Sutich

WA gambler turns $15 wager into more than $410,000 at Auburn casino

A Washington gambler turned a $15 bet into hundreds of thousands of dollars over the weekend at an Auburn casino.

8 days ago

world cup public safety index...

Frank Lenzi

‘No sustained honeymoon’: 65% say Seattle is losing World Cup public safety momentum

It is difficult to afford to live or run a business in Seattle, and the city has lost the progress it made leading up to and during the World Cup last summer in terms of crime and public safety. Those are two of the major takeaways from a new survey from the Seattle Metro Chamber.

9 days ago

Washington part of region seeing inflation above national average