Alabama vs United States Overall Inflation Explained

A new report from the National Labor Statistics comparing Alabama vs U.S. consumer prices indicated some slight contrasts. For most of the country, prices rose 0.3% from July and 2.9% year-over-year, with the South region showing a similar monthly gain but slightly lower annual inflation at 2.6%. Housing remains the primary driver, up 4.0% annually in both regions, while food and beverages continue to climb at around 3% year-over-year. Apparel showed volatility, with modest national gains but annual declines in the South. In contrast, transportation and medical care costs were flat or slightly down monthly, helping offset broader inflationary pressures. Overall, inflation is cooling relative to 2022–2023 peaks, but housing and food remain persistent cost pressures.

Overall Inflation

  • U.S. City Average: Prices rose 0.3% from July and are 2.9% higher than a year ago.
  • South region: Similar trend — 0.3% monthly increase, but slightly lower year-over-year growth at 2.6%.

Key Categories

Other Goods & Services: Continued steady growth (+0.2% month, ~3–4% year across both U.S. and South).

Food & Beverages: Both U.S. and South rose 0.4% over the month, with annual gains of 3.1% (U.S.) and 3.0% (South).

Housing: Still the strongest driver. Up 0.3% month / 4.0% year (U.S.), and 0.5% month / 4.0% year (South).

Apparel: Volatile. Up sharply 2.2% month at the national level but almost flat year-over-year (+0.2%). In the South, up 1.3% month but actually down -1.4% annually.

Transportation: Very mild changes — U.S. up 0.2% month, 0.9% year; South flat to slightly down (-0.1% month, 0.0% year).

Medical Care: Flat nationally (0.0% month, 3.4% year) and slightly negative in the South (-0.2% month, 3.0% year).

Recreation: Declined (-0.1% month, 2.3% year U.S.; -0.6% month, 1.8% year South).

Education & Communication: Essentially flat, +0.3% month, 0.3% year (U.S.), with the South showing +0.1% month but -0.7% year.