According to the Federal Bureau of Labor Statistics, the Consumer Price Index (CPI) in Anchorage rose 2% in 2012. Anchorage is the only "urban" community in Alaska that is tracked for these national statistics which come out twice a year. It measures the price of a consistent “basket of goods” over time that comprises typical household spending. Therefore, expenses for housing are weighted the highest as percentage of the average person’s income, followed by energy and food.
The 2% increase over the last 12 months is slightly lower than Anchorage's 10 year average inflation rate of 2.7%. Average prices have not shown much volatility during the decade. The largest rate of change was 4.6% in 2008 when gasoline prices rose dramatically and the low was 1.2% in 2009, mainly due to flat housing prices.
The largest price increase in the past 12 months in Anchorage was seen in medical care (+4.4%), apparel (+4.1%), housing (+3%), food (+1.1%), and transportation (+1.1%). Price declines were measured in three major categories. Energy decreased 2%, mainly due to a pullback in gasoline prices. Education and communications was 1.1% lower and recreation fell 0.2%.
Nationwide, inflation has been low, increasing only 1.7% in 2012. The largest increases have been in medical care (+3.7%), transportation (+2.6%), housing (+2.2%), food (+1.8%) and apparel (+1.8%).
The most significant differences from Anchorage compared to the nationwide average are gasoline prices rose slightly in the U.S., up 0.5%, and housing costs in the U.S. have been increasing at slower rate than in Alaska. These are the two largest expenses in the average person’s monthly budget, so they will have the largest impact.
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