U.S. inflation accelerated to 2.7% year-over-year in June 2025, the fastest pace in four months, according to new Consumer Price Index data. Seattle matched the national figure at 2.7%, but local prices are rising more quickly in the short term: the Seattle area saw a 1.4% increase over just the past two months, compared to a 0.3% rise nationally.

This steeper near-term climb reflects sharper increases in core categories like food, housing, and energy. While national inflation has been driven largely by goods exposed to new tariffs, Seattle households are also feeling persistent local cost pressures that have kept the city’s inflation environment more intense than average.

Food

The food index in Seattle rose 4.8% year-over-year, nearly double the national rate. Prices for groceries increased 5.3%, with meat, poultry, and dairy among the most impacted items. Food away from home—such as restaurant meals—rose 3.9%.

These increases reflect both national supply issues and regional factors, such as higher wages, transportation costs, and a strong local restaurant sector that passes more overhead to consumers.

Housing

The shelter index, which includes rent and homeowners’ equivalent rent, increased 3.1% in Seattle—above the national shelter inflation rate of 2.5%. While lower than past years, housing remains one of the most persistent sources of local inflation. Home price growth has slowed, but rents in King County remain elevated due to limited supply and high demand.

Property tax increases and housing-related utility costs have also contributed to the upward pressure on shelter expenses.

Energy

Energy prices rose 5.0% year-over-year in Seattle, compared to 2.7% nationally. Gasoline rose 0.8%, while electricity and natural gas saw higher increases. Local utilities, including Puget Sound Energy and Seattle City Light, have implemented rate hikes to recover infrastructure costs and invest in wildfire resilience.

Where prices have cooled

Despite these increases, several categories have brought relief. The cost of apparel declined 1.6% year-over-year, and recreation services saw a 1.6% decrease as well. Prices for household furnishings and operations rose only modestly, with some subcategories showing flat or negative growth. These slower-moving segments have helped balance out the overall inflation rate.

For many Seattle households, however, the ongoing increases in core essentials—groceries, rent, and utilities—continue to shape day-to-day financial decisions.