Denver, Colorado 2021-10-13 14:52:19 –
Consumer inflation in Metro Denver has reached its highest level since 2001, when the dot-com boom pushed prices and wages across the economy.
Measured annually, the Denver-Aurora-Lakewood consumer price index rose 3.5% to 4.5% in September. July annual pace According to the highest reading since the 4.7% increase recorded in 2001. Update from US Bureau of Labor Statistics..
Energy prices in the Denver region are up 33% year-on-year, primarily due to a 54.8% increase in gasoline prices. Food prices rose 3.3%, the cost of protein sources such as meat and dairy products rose 4.9%, and the cost of eating out rose 4.2%.
After removing food and energy, two more volatile spending categories, “core” inflation, are moving at a rate of 3.1% in the Denver region. Within the core rate, used car prices have risen by 24.8% and clothing costs have risen by 16.8%.
“High transportation costs, rising energy prices, material shortages Supply chain bottleneckScott Anderson, Chief Economist at Bank of the West, said in a research note:
In the early days of the pandemic, Denver Highest consumer inflation in US metropolitan areasHowever, it has fallen back since then. That 4.5% inflation is below the 5.4% rise measured nationwide in September.
Shelter costs, which account for about one-third of the consumer price index, take time to be “burned” into official figures and continue to put pressure on households even after the rise in used car and gasoline prices has subsided. There is a possibility.
Denver shelter costs, despite the apartment list, have risen by only 0.7% year-on-year, according to official CPI indicators. Recorded an annual increase of 16% in apartment rent In Metro Denver in September. NS S & P CoreLogic Case-Denver Schiller Home Price Index In July, it recorded a record 21.3% annual rise in home prices, and unlike last year, the rise was not offset by lower mortgage rates.
Nadia Evangelo, senior economist at the National Association of Realtors, said 4.8 million households will buy homes from 2019, although mortgage rates are much lower than they were at the time, as home prices have risen sharply nationwide. He said he couldn’t afford it. The realtor said in a research note.
For the first time since 1972, she added that consumer inflation is above the average 30-year mortgage rate.
Rising natural gas prices are another noteworthy item, given that consumers in cold climates like Colorado are pushing up what they have to pay this winter to warm their homes.Xcel Energy, the state’s largest utility, expects home customers to pay on average Housing utility costs increased by 14.4% from this month..
As another sign of how hot inflation is progressing, the Social Security Administration plans to take over a 5.9% increase in living expenses next year, which puts pressure on wage increases that employers must provide. There is a possibility of calling.
Consumer inflation hits a 20-year high in Denver area Source link Consumer inflation hits a 20-year high in Denver area