Price decreases at the pump and on used car lots helped push consumer inflation lower in metro Denver the past two months and bring it more in line with the national average last month.

The Consumer Price Index for Denver-Aurora-Lakewood, which is measured every two months, dropped 0.1% between November and January, following a 0.34% decline between September and November, according to an update Tuesday from the U.S. Bureau of Labor Statistics.

The month-over-month declines are helping push the annual rate lower. That annual increase was 5.4% in September, 4.5% in November and 3.5% in January.

“After experiencing deflation for the first time in over a year from September to November of 2023, Denver’s MSA has now experienced consecutive bi-monthly periods of deflation,” said Cole Anderson and Erik Gamm, analysts with the pro-business think tank Common Sense Institute, in a research note.

Metro Denver’s inflation rate is still running hotter than the U.S. rate of 3.1%, but the gap has narrowed significantly. The region had the ninth highest rate of consumer inflation since 2020 last month, according to the CSI report.

Deflating transportation costs were a key driver in cooling down Denver’s inflation rate. Gasoline prices have fallen 16% the past two months and are down 22% over the past year. Used car and truck prices are down 3.8% over the past two months and 4.7% over the past year.

Clothes were also getting cheaper, dropping 6.6% in the past year and 1.5% the past two months. Medical costs were down 2.6% since November.

Housing costs continue to be the key driver of inflation, with rents up 5.7% on the year and an equivalent rent measure for homeowners up 7.2%. Rising household energy costs, up 9.7% the past year and 1.4% the past two months, continue to plague Colorado consumers. Nationally, those costs are down 2.4% the past year.

Prices for foods purchased for home consumption were up 1.5% since November and 1% for the year in metro Denver. Prices were down the past year for cereals and breads; meat, poultry, fish and eggs; and for non-alcoholic beverages. They continued to rise for dairy products, fruits and vegetables and alcoholic products.

Consumers who dine out continue to get hit with price hikes. The index for food eaten away from home is up 6.7% the past year, and 0.9% in the past two months.

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