ALASKA TRENDS
W
hile vaccination rates in Alaska continue to soar, total prices consumers paid for goods and services in 2020 moved in the opposite direction. The CPI, or Cost Price Index, measures the average change in prices paid by consumers for a market basket of goods and services over a period of time. According to Department of Labor Economist Neal Fried, it is the most applied cost-of-living statistic in the state that is used to adjust a variety of rates including collective bargaining agreements and minimum wage. And as revealed in the Department of Labor’s March Economic Trends report, the CPI for urban Alaska experienced a 1.1 percent decline in 2020—the first time in the history of the state. The deflation was likely a pleasant symptom of an otherwise unpleasant year. And while it’s not expected to continue, we’ll take the small win.
US inflation rate compared to the Alaska inflation rate
USA
2010
1.5 1.80
AK
2011
2.96 3.20
2012
1.74 2.20
2013
1.5 3.10
2014
0.76 1.60
2015
0.73 0.50
2016
2.07 0.40
2017
2.11 0.50
2018
1.91 3.00
2019
2.29 1.40
2020
1.36 -1.10
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
.3%
$98.90=$100
For every $100 the urban consumer spent in 2019, they paid $98.90 in 2020. 2019 had a 1.4% inflation rate, the average consumer spent about $101.40 for every $100 they spent in 2018. It’s the mostapplied cost-of-living statistic in the state, used to adjust collective bargaining agreements, rental agreements, child support payments, the minimum wage, and real estate contracts. 126 | April 2021
Signs point to a different story for 2021. October and December recorded 0.3% inflation from the same periods the year before.
4.4%
Food and beverage prices rose 4.4%.
4 of 6
Demand fell hard for many goods and services last year, and Alaska’s CPI registered deflation from the prior year four out of the six (bimonthly) times it was measured. Alaska Business www.akbizmag.com
