Year-over-year inflation in the Midwest and United States fell to 2.4% in January, down from 2.7% in December, according to the Common Sense Institute’s analysis of the latest Bureau of Labor Statistics data.
Despite the slowdown from pandemic-era highs, consumer prices in the Midwest remain 26.1% higher than January 2020 levels, according to the report, issued Friday, Feb. 13.
The typical Iowa household must now spend $1,283 more per month than in 2020 to maintain the same standard of living, CSI reported.
Monthly Midwest inflation increased from -0.12% in December to 0.40% in January, marking a return to typical seasonal price increases.
Nearly all major spending categories saw price increases over the past year. Fuels and utilities led year-over-year increases at 8.1%, followed by housing at 4.5%, recreation at 4.2% and services at 3.6%.
Transportation and energy were the only major categories to experience deflation, declining 2.4% and 0.3%, respectively.
Valentine’s Day 2026 costs are estimated to rise 4.8% year-over-year, driven by higher prices for jewelry (7.1%), candy (7.5%), flowers (6.7%) and dining (4.7%), according to the analysis.
The Common Sense Institute is a non-partisan research organization dedicated to the protection and promotion of Iowa’s economy. The organization expanded into Iowa in January 2024.
