Inflation continues to spike in Denver metro
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The average price that consumers are paying for goods and services in the Denver metro area is 9% higher now than a year ago, new federal data shows.
Driving the news: As of March, annual inflation spiked by 9.1%, exceeding the 8.5% national rate, per the latest U.S. Bureau of Labor Statistics Consumer Price Index. Excluding food and energy, the rate rose 8% from March 2021.
- It's a 2% hike from the most recent January numbers and represents a new record high.
Why it matters: Inflation is a new political benchmark for the 2022 election.
- Republicans see rising costs as leverage to oust the Democratic-led Congress and elected officials in Colorado as the question of affordability becomes a political touchpoint.
What's happening: The five categories with the largest cost increases in the last year were:
- Energy
- Gasoline
- Utilities
- Goods
- Food
The big picture: The increases in the Denver-Aurora-Lakewood metro ranked eighth out of 23 urban areas since the end of 2020, according to Steven Byers, an economist at the business advocacy organization Common Sense Institute.
What's next: Economists expect the spring spike to recede a bit this summer.
- The economic forecast presented to lawmakers in March predicted an average inflation increase of 7.1% for 2022 and the rate falling to 3.9% in 2023.