Inflation in the Seattle metro region rose faster than almost any other West Coast city over the past year, and was a full percentage point higher than the U.S. city average, according to the latest Bureau of Labor Statistics numbers.
Seattle-area prices rose 4.4% between August of 2025 and 2026, while the U.S. city average increased 3.4%. The national city average matched the rate of inflation in the San Francisco metro, Seattle’s closest peer region.
Rising energy prices were the primary driver of Seattle’s higher rate, but James McCafferty, Director of Western Washington University’s Center for Economic and Business Research, said there are more subtle factors at play too.
“ What’s interesting is that while energy is the headline of the show, and it’s definitely up — it’s 15.9% in the Seattle market for energy [and] San Francisco’s only at 12.3% — it’s groceries, it’s food, it’s restaurants that are pushing the Seattle market much higher from an inflationary standpoint than our friends to the south.”
McCafferty said supply chain disruptions and rising transportation costs are inflating the price of food in the Seattle area. He also said labor and insurances costs are squeezing Seattle restaurants and grocers.