Inflation in Colorado – May 2025 Update

June 11, 2025

Denver Metro Price Growth Outpaces Nation

Between March and May, Denver’s price level rose by 1%, its highest recorded change in almost two years and nearly four times the bi-monthly average since August 2023. Housing, transportation, and medical care prices are most responsible for this sudden growth—they rose by 1.5%, 1.4%, and 0.9%, respectively, whereas prices of food and durable goods remained relatively stable. Whatever caused these phenomena must be unique to Colorado, though: on average, the rest of the country experienced only 0.3% inflation over the last two months.

Accordingly, it’s unlikely that national policy is to blame for Denver’s most recent inflationary trends. The federal funds rate remains at 4.33%, where it’s sat since January, and hopes that it would be lowered by the summer have yielded to expectations of no change into the fall. Likewise, predictions that new tariffs would substantially raise prices appear not to have materialized, at least yet. Whether Denver’s sudden price spikes through May are one-time corrections in a small number of sectors or indicative of something more persistent will become clearer over the coming months.

Key Findings:

Figure 1:

Inflation in metro Denver over the last 12 months was 2.25%, while the national average growth was 2.38% (BLS CPI Survey).

Figure 2:

Price Changes in Metro Denver over the Previous Year

Figure 3: