The latest update from the U.S. Bureau of Labor Statistics revealed that the Denver-Aurora-Lakewood Consumer Price Index remained unchanged between July and September. While the overall index showed no movement, there were fluctuations in various items within the basket of goods used to measure inflation.
In September, annual inflation in metro Denver rose by 1.4%, staying consistent with the pace seen in July. Denver’s inflation rate of 1.4% is lower than the national rate of 2.4% measured in September, with Tampa, Fla., being the only city with a lower rate.
Housing costs, a significant component of the CPI, decreased by 0.6% over the past two months but increased by 1.4% compared to the previous year. Food prices for home consumption fell by 1.1% since July and by 0.4% annually, driven by a 5.2% decline in meat, poultry, fish, and egg costs.
On the other hand, prices for dining out increased by 0.5% since July and by 5.8% compared to September 2023. Energy prices saw an 8.7% decrease over the past year, primarily due to a sharp decline in natural gas prices.
Clothing costs surged by 6.8% since July but remain 5% lower than the previous year. Prices for other goods and services increased by 7.15% annually and by 1.75% since July. Used car prices dropped by 4.3% in the last two months, while new car prices decreased by 0.3%.
Despite the positive outlook on inflation in metro Denver, analysts are concerned about stronger-than-expected price gains nationally, leading to uncertainties about the Federal Reserve’s future rate cuts. The possibility of another significant cut in November is now unlikely, with decisions hinging on upcoming economic data.
Senior economist Sal Guatieri from BMO Capital Markets noted, “Much will depend on whether we see a second straight strong jobs report in October.” For more updates on business news, sign up for our Economy Now newsletter.
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