Housing costs drove inflation higher in Colorado Front Range communities during the second half of 2015, according to data released Wednesday by the U.S. Bureau of Labor Statistics.
The Denver-Boulder-Greeley Consumer Price Index increased 1.4 percent from the second half of 2014, but the increases are slowing. In the second half of 2014 inflation .
The Front Range’s rate for the last part of 2015 is one of the highest in the nation for major metropolitan areas. Only San Francisco, San Diego and Seattle had higher rates, of 2.7 percent, 2.4 percent and 1.7 percent, respectively.
— both rent and ownership — were up 5.8 percent from the second half of 2014, according to BLS regional economist Stanley Suchman.
Food costs were unchanged while energy costs sunk 19 percent — led by cheaper prices for motor fuel and utility gas service.
When removing the volatile food and energy prices, core inflation was 3.5 percent.
In December, the U.S. Consumer Price Index .
and workforce shortages are expected to lead to increases in wages this year, said Gary Horvath, an independent economist based in Broomfield. Those increases, however, might prove to be a double-edge sword for consumers.
“Ultimately, (employers) are going to pass the increased costs onto the consumers,” Horvath said. “They’re going to do everything they can to create efficiencies to keep the costs down to be competitive.”
Alicia Wallace: 303-954-1939, awallace@denverpost.com or @aliciawallace
