Inflation in the Pacific Region-March 2026

All of the data discussed in this report come from the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI)^[i]database. This source no longer produces estimates of price levels in Oregon nor any metropolitan area within Oregon, so this report references data from the Pacific region (Alaska, California, Hawaii, Oregon, and Washington.)^[ii]

Inflation Ticks Up in the Pacific Region as Energy Costs Surge

Prices in the Pacific region continued to rise but remained below the national average. The moderation in the rate of price increases observed over the prior two months stalled and partially reversed in March 2026. Consumer prices in the Pacific region increased 1.4 percent over the January–March 2026 period, compared with a 1.5 percent increase for the U.S. city average. Over the 12 months ending in March 2026, prices in the Pacific region rose 3.1 percent, below the national increase of 3.3 percent.

The March data arrived amid a notable national backdrop. Energy prices surged in March following heightened geopolitical tensions in the Middle East, which contributed to disruptions in global oil supply channels. This increase in energy costs was a major driver of the rise in headline inflation during the month. In addition, tariffs placed further upward pressure on select categories, including food and gasoline, reinforcing broader price increases.

Energy prices were a significant driver of inflation over the period, reflecting sharp increases in energy costs observed nationally. Over the 12 months ending in March 2026, energy prices rose 12.5 percent nationally and 10.9 percent in the Pacific region. The jump in energy prices reflected a broader national trend shaped by geopolitical developments and rising global oil prices.

Despite higher headline inflation, underlying price pressures remained more contained in both the Pacific region and nationally, with the index for all items less food and energy rising 2.6 percent over the year. This suggests that core inflation remained relatively stable even as energy costs drove much of the increase in headline inflation.

The CPI-U for the Pacific region increased 1.4 percent over the 2 months from January 2026 to March 2026. Over the 12 months ending in March, prices rose 3.1 percent, below the 3.3 percent increase in the U.S. city average.

Key Takeaways:

• Over the 12 months ending in March 2026, the CPI for the Pacific region rose 3.1 percent, below the national average of 3.3 percent. 
• The Consumer Price Index for All Urban Consumers in the Pacific region increased 1.4 percent over the 2 months from January 2026 to March 2026.

Sectoral Price Changes^[iii]

The inflationary environment has cost the average household in the Pacific region nearly $58,000 compared to 2020 spending levels, with Housing and Transportation accounting for nearly 60 percent of this increase.

• From March 2025 to March 2026, the largest price increases were seen in: Energy (10.9%), Transportation (5.7%) and Medical Care (3.6%).
• The prices of Durables and Education declined slightly on a year over year basis.

The Pacific region saw above-average annual price growth in:

• Medical Care (3.6% vs. 3.1%)
• Recreation (2.8% vs. 2.2%)
• Food (2.9% vs. 2.7%)
• Transportation (5.7% vs. 5%)

From March 2025 to March 2026, price growth in the Pacific region was slower than the national average across several categories—Energy (10.9% vs. 12.5%), Apparel (1.9% vs. 3.4%) and  (Housing (2.9% vs. 3.4%).