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Humboldt Price Spike: Cannabis Raises Inflation Rate

The rate is calculated based on the local Consumer Price Index (CPI), which shows changes in prices for major consumer goods and services in Humboldt County, from the price of eggs and meat to housing, and helps calculate the local inflation rate. 

For comparison, the statewide inflation rate is 3.3% from February 2024 to 2025, according to the State of California Department of Industrial Relations. It's important to note that the statewide rate measures what consumers pay for goods in urban centers, like San Francisco, Los Angeles, and San Diego. Nationwide, the inflation rate was 2.3% as of April 2025, according to the US Bureau of Labor Statistics (BLS), which tracks tens of thousands of goods nationally. 

Notably, the local CPI was calculated using the price of more than 500 products, whereas the national CPI gathers price information on more than 60,000. This can contribute to a "nosier" inflation rate here in Humboldt, says Erick Eschker, chair of the Economics department and director of the Humboldt Economic Index. 

Rural communities can experience higher inflation rates for several reasons, ranging from increased transportation costs to limited competition and more susceptibility to supply chain disruptions. 


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