Arizona Economy Shows Resilience Amid Signs of Slower Growth

The Arizona economy has shown resilience in the face of slower growth, according to an analysis by the Economic and Business Research Center. Inflation eased in June as gasoline prices fell, following a temporary pause in hostilities in the Strait of Hormuz.

The U.S. Consumer Price Index (CPI) for All Items decreased 0.4% over the month in June, down from a 0.5% increase in May. The all-items index increased 3.5% over the year, down from a recent peak of 4.2% in May.

Arizona's labor market recovered from job losses at the end of 2025 but still showed mixed signals. The seasonally-adjusted number of nonfarm payroll jobs in June increased by 23,600, or 0.7% over the year, compared to a flat job growth nationally.