Earlier today, the BLS released its CPI data for 2013. The data shows that Denver-Boulder-Greeley rate of inflation, 2.8%, was about double the rate for the U.S., 1.5%. (The Denver-Boulder-Greeley CPI is used as a proxy for Colorado inflation).
The inflation rate for three of the eight categories was well above the state average (2.8%). These categories were: apparel (6.5%), housing (4.8%), and medical care (3.6%). In addition, the rates for these categories were also significantly greater than the U.S. rate.
The housing category (4.8%) includes three subcategories:
• Inflation for the shelter category increased 4.5% in Colorado, compared to 2.3% for the U.S.
• Colorado fuels and utilities increased 9.3%, compared to 2.8% for the U.S. Within that category Colorado household energy rose by 11.2%, compared to 2.4% for the U.S.
• Colorado household furnishings rose by 0.9% compared to -0.8% for the U.S.
Colorado’s higher rate of inflation in the housing category is a reflection of stronger growth in the state economy and the residential real estate market than the U.S. The magnitude of the state’s increase in fuel and utilities may be a reflection of its commitment to alternative energy sources.
Finally, Colorado’s rate of inflation was somewhat higher in the other services category. The rise in prices for food and beverage was the only category that was significantly higher in the U.S. than Colorado. The remaining three categories (education and communications, recreation, and transportation) had similar growth rates for inflation.
| Category | Denver-Boulder-Greeley | U.S. |
|---|---|---|
| Apparel | 6.5% | 0.9% |
| Housing | 4.8% | 2.1% |
| Medical care | 3.6% | 2.5% |
| Other goods and services | 2.3% | 1.7% |
| Education and communication | 1.4% | 1.5% |
| Food and beverages | 0.6% | 1.4% |
| Recreation | 0.5% | 0.5% |
| Transportation | -0.2% | 0.0% |