Study: Yuma area has least inflation in Ariz.
Yuma ranks No. 1 as the urban area with the least inflation in Arizona, according to a study by a financial technology company. Inflation is the increase in the prices of goods and services across an economy. When prices inflate, a person needs more money to buy the same things.
The study by SmartAsset, which was released on Tuesday, gave Yuma an 18.32 percent increase in purchasing power, the highest in the state, a .86 percent average change in cost of living, an average increase in personal income of 2.57 percent, again the highest in the state, and an inflation index of 58.05.
City officials and a business representative credited a team effort by regional partners for the “economic success” being experienced in the area.
“These results validate all the hard work and regional approach we have been pursuing since 2014. We have been working with key partnerships throughout the region that have created an environment of higher-paying jobs and increased competitiveness,” Mayor Doug Nicholls said. “These partnerships are extensive from higher education to adjacent cities and from agencies like Greater Yuma Economic Development Corp and 4FrontED to private industry, all working together.”
Yuma City Administrator Greg Wilkinson echoed the sentiment. “The city has worked hard with the community and all or our partners in economic development, mainly GYEDC. It is a team and regional effort where collaboration is the key to economic success,” Wilkinson said.
He pointed to a 2016 study that placed Yuma top in Arizona and No. 3 in the nation for job creation. In 2017, Yuma ranked 23rd in the nation for job growth, but was No. 1 again in the state.
Still another study noted Yuma had “done very well with the increase in personal income for 2017. Increasing personal income is huge for our community who benefits the most from those increases in their take-home pay,” Wilkinson said.
“Now again for the third year in a row for 2018 we see that Yuma and our citizens had more than an 18 percent increase in their purchasing power, which is the highest in Arizona,” he added. “We also have the highest average personal income growth in the state with a very low inflation rate. It is very rewarding to see all the hard work and collaboration pay off for our community. We and all of the regional partners will continue to strive to keep this trend going.”
John Courtis, executive director of the Yuma County Chamber of Commerce, said the area’s growing commerce and construction gave merit to the study results.
“I think this speaks to the quality of life we have
here in Yuma. Sure, we don’t do a great job of telling our story to the outside world, but for those of us that live here, we already know it’s a great place,” Courtis said. “Incomes are rising with the expansion at Yuma Regional Medical Center, continued testing at Yuma Proving Ground, and construction is back on the upswing, and costs are holding, so the data has some merit. But I’ve never been much on giving the ‘SmartAsset’ findings much credence because of their methodology, but anytime Yuma is at the top of any list that puts us in a great light, I’m all in!”
SmartAsset said it analyzed data from 2007 and 2017 to calculate the average change in cost of living and average change in personal income in urban areas around the nation. It used these numbers to determine the change in purchasing power and from there come up with the metro areas in the country that have seen the least inflation over the past decade.
The firm ascertained the cost of living for each location by looking at the price for a “basket” of goods for 2007 and 2017. The goods included basics like milk, shampoo and rent. In the U.S., the Consumer Price Index takes what the government considers a representative basket of goods and services and records changes in their prices from month to month and year to year.
SmartAsset also calculated the average per capita personal income for each city for both years.
To figure out how far money would go in each city, SmartAsset calculated purchasing power by dividing the average per capita income by the cost of living in each city for both 2007 and 2017. The change in purchasing power from 2007 to 2017 then shows the metro areas that have seen the least inflation over the past decade.
SmartAsset noted that while many countries have battled inflation and even hyperinflation in the past 120 years or so, the U.S. has largely avoided that situation. Average annual inflation in the U.S. between 1913 and 2013 was 3.22 percent. The nation even experienced deflation during the Great Depression. However, there was significant inflation in the 1970s and ‘80s.
“In general, though, the U.S. Federal Reserve moderates inflation to keep it around the 2 percent mark. In other words, you don’t need to worry that you’ll be carrying suitcases full of dollars to the grocery store any time soon,” SmartAsset stated.
The full study results, methodology and interactive map can be found at https://smartasset. com/investing/inflationcalculator#arizona.