Denver announced that the state’s inflation rate hit its lowest level in three years.
The news indicates that the Mile-High City’s inflation has fallen below 3% and well below the U.S. average. The Denver-Aurora-Lakewood area would see this financial benefit thanks to externalized food and gasoline prices.
Denver tops the low inflation charts
The news comes from the bimonthly update from the US Bureau of Labor Statistics. The government institution has been tracking Denver’s inflation since just over a year ago, when Americans were grappling with high prices for goods like food and gas.
At the time, Denver was facing the worst inflation in the state’s recent history, at about 5.4% compared to the national average of 3.7%.
The major factors contributing to the state’s turnaround are due to both food prices and the way gasoline prices have plummeted in the state.
The report states that “over the past 12 months, the CPI-U has advanced 2.8%. The index for all items, excluding food and energy, increased 3.4% over the year, while food prices increased 2.5%. Energy prices fell 5.4%, entirely due to the decrease in gasoline prices.”
Gasoline prices also took a positive turn from last year, when a major state fuel supplier found itself having to go offline. Suncor Energy’s shutdown of the Denver pipeline would cause gas prices to rise 35% and 50%, respectively, throughout the year.
Gas prices now in Colorado stand at $3.07 per regular gallon, which is down about 10% over the year according to AAA. The BLS report on energy prices states: “From March 2023 to March 2024, energy prices decreased 5.4%, entirely due to declines in gasoline prices (-20.6%). Prices paid for natural gas service have increased and the electricity index has increased 4.9% over the past year.”
The report focuses on the surrounding Denver-Aurora-Lakewood areas, which consist of Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties in Colorado.
Image: ideogram.
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