October 10, 2024

Prices Fell Slightly Over Last Two Months  

Prices in the Denver metro area fell for the first time since January of this year despite national inflation growing slightly. However, Denver metro households still bear significantly increased household costs from sustained inflation, particularly in the largest segments of household spending such as direct housing costs and transportation.

Prices in Denver fell by 0.012% during August and September 2024 after they had increased by 0.61% over the two prior months. National inflation was higher at 0.37% during August and September of this year and was also elevated year over year with prices increasing 2.41% between September 2023 and September of this year, while metro Denver’s inflation rose by 1.44% over this time. Although year-over-year inflation in Colorado was outpaced by national inflation, Colorado families spent an average of $1,335 per month more in August and September of this year since 2020.

In the months of August and September the prices of medical care (-0.14%), housing (-0.56%), and transportation (-0.32%) decreased, while education (1.7%), food (0.6%), recreation (0.8%), and utilities and household fuels (0.61%) increased. Of the 23 metropolitan area CPI series tracked by BLS, Denver’s total price growth since the end of 2020 ranks 13^th.

• During August and September, prices in Denver decreased by 0.012%, while national inflation grew by 0.37%.
• Fuels and utility prices have increased by 3.5% between September ‘23 and September ‘24 while the U.S. average was only 3%.
• From September ‘23 to September ‘24, the cost of housing in metro Denver rose 1.39% while nationally it rose 4.08%. However, the price of housing increased by 8.25% in Denver from September 2021 to September 2022.
• In August and September, the average Colorado household spent $2,670 more due to inflation than it spent in the same period in 2020—an average of $1,335 per month. The average Colorado household has spent $36,864 more since 2020 because of higher inflation.[i]

In September the Federal Reserve cut the benchmark interest rate by a half a percentage point and hinted that further cuts would follow in the future, the first cut in over four years.[ii]

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Inflation in metro Denver over the last 12 months was 1.44%—0.97 of a percentage point below the national average (BLS CPI Survey)[iii]

• Of the 23 urban consumer price indices tracked by the BLS, Denver–Aurora–Lakewood’s ranks 13^th in total growth since the end of 2020.
• Food prices in the Denver MSA grew by 2.07% over the last 12 months, while national food prices grew by 2.28% over the same time.
• The two prices that grew the fastest over the last 12 months were those of fuel and utilities and services, which grew by 3.5% and 2.3%, respectively.

Price Changes in Metro Denver over the Previous Year