Inflation in Colorado drops below national level — but remains high
Inflation in the Denver metro area is still painfully high, but new federal data shows it's not as extreme as the rest of the country.
Driving the news: Consumers are now paying 7.7% more for goods and services than a year ago, compared to the national rate of 8.2%, per the latest U.S. Bureau of Labor Statistics Consumer Price Index.
- The average Colorado household has spent $9,207 more on food, housing, transportation and medical care since 2020, per a report from senior economist Steven Byers at the conservative-leaning Common Sense Institute.
- Prices were largely driven by food costs (up 11.8%) and fuel and utilities (up 9.4%).
Why it matters: The figures released Thursday have become key political benchmarks in the 2022 election, with Republicans blaming Democrats in Colorado and Congress for rising costs.
The other side: Inflation in Colorado has been moderating since July — when the 12-month rate fell to 8.2%, down from 8.3% in May — according to federal stats.
- The latest data — which shows a dip in September of about 0.2% since July — supports some economists' forecasts that suggest inflation may have peaked.
The big picture: Consumer prices nationwide continued to soar in September, with the Consumer Price Index rising 0.4% — double economists' expectations, Axios' Courtenay Brown writes.
- Industry experts predict the latest report to pressure the Federal Reserve, which is already raising interest rates aggressively, to consider another historic rate hike in November to prevent a recession.
More Denver stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Denver.