Rising inflation rates hit Alaskans on gas, transportation and food

ANCHORAGE, Alaska (KTUU) - Alaska’s inflation rate continues to soar as it reached 7.2% in December of 2021, according to a report from the Department of Labor issued this month.

Gasoline prices in urban Alaska have risen 52.2% from April 2021 to 2022, according to the Department of Labor. Over that same time, transportation costs rose 23% and food costs saw an uptick of 11.3% hike.

“Most of these factors are national and international,” Department of Labor Research Chief Dan Robinson said. “Sometimes people get worked up about this administration or that one being better or worse for inflation. Most of what we’re seeing now, they’re international forces. You think of, I mean Russia is an obvious one but gas prices, oil prices, international factors drive those things.”

Housing in Alaska saw the median rent hit $1,279, a bump of $100 from the previous year while the state’s average home price is $402,976, an increase of 8% from last year. Ketchikan had the most expensive median home price in the state at $503, 200, Anchorage was $445,408, the Matanuska-Susitna Borough was $418,412 and Fairbanks at $326,659.

“I don’t think anybody very credible thinks inflation is going to come down to 1.5% — the long-term average — in the next several years at least,” Robinson said. “So it’s here to stay for at least a little while.”

Inflation was at its highest in Alaska in 1975 when it reached 13.5%, according to the department, with other notable years including 1974 (10.8%), 1979 (10.5%) and 1980 (10.2%).

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