FOR FURTHER INFORMATION: (816) 285-7000

FOR RELEASE: February 20, 2009

 

CONSUMER PRICE INDEX FOR DENVER-BOULDER-GREELEY, CO

Prices increased 4.1 percent from the second half of 2007 to the second half of 2008

The Consumer Price Index for All Urban Consumers (CPI-U) for the Denver metropolitan area increased 4.1 percent from the second half of 2007 to the second half of 2008, with most of the increase occurring in the first half of the period, the Bureau of Labor Statistics reported today. According to Regional Commissioner Stanley W. Suchman, while costs in all eight major expenditure categories were up over the period, nearly a third of the increase in the overall index was attributable to rising costs for housing.

Among the eight major expenditure categories, rising housing costs had the largest impact on the overall index, advancing 3.2 percent with both shelter and household energy costs contributing to the over-the-year increase. The shelter index rose 1.8 percent as rent of primary residence increased 2.8 percent and owners' equivalent rent of primary residence rose 1.4 percent. Prices for household energy jumped 22.5 percent from the second half of 2007 to the second half of 2008 after declining 20.6 percent from the second half of 2005 to the second half of 2007. Electricity prices increased 15.9 percent, the largest over-the-year advance since 1984. Charges for utility (piped) gas service turned up 24.9 percent over the year after falling 12.7 percent from the second half of 2006 to the second half of 2007. Prices for household furnishings and operations rose 2.6 percent.

The food and beverages index had the second largest effect on the all items index as costs rose 5.4 percent from the second half of 2007 to the second half of 2008, the largest over-the-year increase since 1990. Prices for food at home climbed 6.6 percent and accounted for nearly two-thirds of the increase in the food and beverages index. Costs for food away from home increased 5.1 percent and alcoholic beverages prices were 0.7 percent lower.

Transportation costs had slightly less impact than food and beverages, advancing 4.0 percent from the second half of 2007 to the second half of 2008 following an increase of 4.8 percent in the same period one year ago. Private transportation costs, which include prices for motor vehicles and motor fuel, rose 3.2 percent over the year. Prices for motor fuel were 3.6 percent higher with price declines during the second half of the year partially offsetting increases registered earlier in the year. The over-the-year increase moderated after advancing 14.6 percent in the same period one year ago.

The Denver metropolitan area also recorded higher prices in the remaining five major expenditure categories. Medical care costs rose 9.1 percent from the second half of 2007 to the second half of 2008, the largest over-the-year advance since 1991. The index for education and communication rose 3.5 percent and recreation prices, which include admissions to movies, concerts, and sporting events, rose 3.4 percent. Prices for other goods and services, which include tobacco and smoking products and personal care items, increased 3.5 percent since the second half of 2007. Apparel prices turned up 2.4 percent over the period following a 7.6-percent decline in the same period one year ago.

Energy prices, which include prices for motor fuel and household fuels, were up 10.6 percent over the year with price increases in the first half of the year more than offsetting decreases in the second half. The special aggregate index for all items less energy rose 3.8 percent. Excluding the impact of food and energy prices the Denver CPI-U was up 3.3 percent from the second half of 2007 to the second half of 2008.

The Denver CPI-U stood at 211.066 for the second half of 2008. This means that a market basket of goods and services that cost $100.00 during the 1982-84 base period cost $211.07 during the first half of 2008. Because metropolitan area CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the area indexes.

_______________________________________________________________________________________________
Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200;
TDD message referral phone number (Federal Relay Service): 1-800-877-8339.
_______________________________________________________________________________________________