A big drop in energy prices offset escalating housing costs to push the inflation rate in the northern Front Range lower in the first half of the year, according to a report Wednesday from the U.S. Bureau of Labor Statistics.
The Consumer Price Index for Denver-Boulder-Greeley rose 1 percent in the first half of the year, down from last year’s 2.8 percent pace.
But the local consumer inflation rate remains significantly higher than the U.S. average, which was running at an annualized rate of 0.2 percent in July.
And Denver’s rate remains the highest in the nation after San Francisco, Portland, Ore., and Anchorage, Alaska.
The cost for shelter in the Denver area rose 5.5 percent in the first half of 2015 from the first half of 2014, according to report. That contrasts with a 3.1 percent annual pace nationally in July.
Food prices rose 1.5 percent, with a 2.9 percent increase in food costs at restaurants and a 0.9 percent jump in prices for food eaten at home.
Falling oil and gas prices, however, helped offset increases elsewhere. The energy index fell 21.7 percent, led by a 32.4 percent drop in gasoline and motor fuel prices. Natural gas utility costs dropped 10.8 percent, while electricity costs were down 1.8 percent.
Removing volatile food and energy prices, core inflation is running at 3.2 percent in the northern Front Range this year.
Local and state governments use the inflation rate to determine how much they can collect and spend. Employers also use the rate to calculate pay increases for the upcoming year.
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or
