Groceries and gasoline in metro Denver are slightly cheaper in May compared to a year earlier, but eating out has become more expensive and rising housing costs are keeping inflation above the target the Federal Reserve wants to see, according to the .
Prices rose 2.6% year-over-year in May in the Consumer Price Index for Denver-Aurora-Lakewood. That is below the annual increase of 3.3% measured nationally and down from the 5.1% annual rate seen in May 2023.
Across April and May, consumer prices rose 0.6% in metro Denver matching the rate seen nationally.
Rents are up 3.1% year-over-year and an equivalent for homeowners is up 4.6% in metro Denver. Fuels and utilities for homes rose 6.6% over the past year, while nationally they rose 4.6%.
Gasoline prices, by contrast, are down 3% over the past year in metro Denver. But that is about to change, said Cole Anderson, a research analyst with the Common Sense Institute, in a note on the inflation numbers.
Northern Front Range stations are required to provide reformulated gasoline to combat high ozone levels and that will add $90 to $260 in fuel costs in June and July for households with two drivers, depending on the type of vehicle they drive, Anderson estimates.
The cost of purchasing a used car is down 9.5% over the past year while new car prices are flat compared to May 2023. Apparel prices are down 2.3%, while tuition costs are up 4.5%.
Food prices are moving in opposite directions, with the cost of food eaten at home down 1.6%, while the cost of food eaten away from home, at restaurants, up 6.2% over the past year.
Among the items purchased at a store, the biggest declines were in cereals and baked goods, down 3.8% and dairy products, down 3.7%. The cost of alcoholic beverages was up 3.3%.
