SEATTLE, Wash. – Inflation across the Pacific region—which includes Washington, Oregon, California, and Alaska—remains higher than the national average, continuing to put pressure on households already grappling with steep housing, transportation, and food costs.
Inflation Running Hotter Than the Nation
According to a new report from the Common Sense Institute Oregon, the Consumer Price Index for All Urban Consumers in the Pacific region rose 3.27% between July 2024 and July 2025, compared to the national average of 2.7%.
Though the gap may appear small, it translates into significant additional costs for families. Since 2020, the average household in the region has spent about $46,339 more due to inflation, including:
-
$7,146 more on food
-
$11,380 more on housing
-
$13,801 more on transportation
-
$2,246 more on medical care
These increases underscore the compounding effect of higher living expenses across essential categories.
Recent Trends in Prices
From July 2024 to July 2025, nearly every major spending category saw price hikes, with the exception of apparel, which dipped slightly by 0.3%.
The largest increases included:
-
Medical care: +4.6%
-
Services: +4.1%
-
Housing: +3.7%
-
Food: +3.6%
This trend marked a reversal from the prior year (July 2023–July 2024), when nearly half of the categories tracked showed a decrease in inflation, giving households temporary relief before the latest uptick.
Housing Pressures Continue
Housing remains one of the most stubborn drivers of inflation in the Pacific region.
“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,” said Mark McMullen, vice president of policy and research at Common Sense Institute Oregon.
McMullen noted that California’s housing market heavily influences regional data, as it accounts for the largest share of sales. Still, Washington is seeing its own housing pressures play out, particularly in Seattle, where home prices continue to climb.
Seattle Housing Market Hits Record Highs
Seattle’s housing market has recorded its highest median sale prices in five years, according to Redfin. In June 2025, the median home price in the city reached $935,000, up from $895,000 in May and 10% higher than June 2024.
The trend reflects a recurring seasonal pattern, where prices dip in the winter months—often bottoming out in January—before climbing again in the summer. The lowest point in recent years came in January 2022, but since then, values have steadily rebounded, with 2025 setting a new peak.
The data highlights the continued imbalance between housing supply and demand, making affordability an ongoing challenge for Seattle residents and prospective homebuyers across the Pacific Northwest.
Transportation and Energy Costs
Transportation, another significant contributor to household budgets, has added nearly $14,000 in costs since 2020, according to the institute’s findings.
Washington drivers in particular are feeling the pinch. Statewide, gasoline prices rose 5% year-over-year, bucking the national trend, where average gas prices fell by nearly 10%. Higher commuting and shipping costs ripple through the broader economy, further straining household finances.
A Region Under Pressure
The persistent cost pressures underscore the unique economic dynamics of the Pacific states, where natural beauty, economic opportunity, and high demand for housing coexist with limited supply and high costs of living.
While inflation has cooled nationally since its post-pandemic peak, households in Washington and its neighboring states are still contending with above-average price growth across essentials.
For many, the rising cost of living has meant difficult trade-offs, delayed purchases, or being priced out of competitive housing markets. And while the latest numbers show some categories, like apparel, experiencing slight relief, the broader picture suggests inflation in the Pacific region remains stubbornly higher than in the rest of the country.
Looking Ahead
Economists caution that without significant increases in housing supply—particularly in Washington’s fast-growing metro areas—costs are likely to remain elevated. Policies aimed at boosting construction, improving transportation infrastructure, and managing energy costs could help ease the burden over time, but solutions will take years to materialize.
For now, families across the Pacific Northwest continue to face the reality of paying thousands more each year compared to households in other regions—an imbalance that may persist as long as demand outpaces supply in housing and other critical sectors.
Leave a Reply