Inflation in Colorado – March 2025 Update

Denver Metro Prices Tick Upwards

Prices in the Denver metro area rose at a faster pace than the nation  over the last two months, growing by 0.22% compared to the U.S. average of 0.17%. This has inverted the annual trend of national price growth outpacing Colorado; over the past 12 months, prices on average have increased by 2.4% across the country and by just 1.9% in the Denver metro. Between February and March of this year, prices across the nation fell by 0.1%, the first time prices have not increased since May-June of 2024 when prices held steady.

The imposition of tariffs, and the subsequent pause, has jolted the international economy and sown uncertainty as to the future of global trade. Despite the positive news on consumer price growth, Federal Reserve Chair Jerome Powell signaled that rates will likely remain unchanged as they wait to see how new tariff policies impact the economy.

In the months of February and March of this year, the price of food (-0.1%), transportation (-0.1%), and recreation (-1.3%) decreased, while the cost of housing (0.53%), medical care (0.94%), and education & communication (5.34%) increased. Of the 23 metropolitan area CPI series tracked by BLS, Denver’s total price growth since the end of 2021 ranks 14th.

• Prices in the Denver metro area rose by 0.22% over February and March of this year compared to 0.17% nationally.
•  Over the last 12 months, prices have increased by 1.9% in the Denver MSA, and by 2.4% nationally.
• The price of energy in the Denver MSA fell by 8.4% over the last 12 months. Energy prices declined by just 3.22% across the nation during this time.
• The average Colorado household has spent $45,055 more since 2020 because of higher inflation.
• The cost of medical care rose by 5.56% over the last 12 months in the Denver MSA, the largest increase of any good and above the national growth of 2.64%.

Inflation in metro Denver over the last 12 months was 1.87%, while the national average growth was 2.41% (BLS CPI Survey).

• Of the 23 urban consumer price indices tracked by the BLS, Denver–Aurora–Lakewood's ranks 14th in total growth since the end of 2021.
•  Food prices in the Denver MSA grew by 3.33% during the last 12 months, outpacing the national food price average of 2.95%.
• The price of medical care saw the largest increase of any consumer good, rising 5.56% over the last 12 months in the Denver MSA. 

Price Changes in Metro Denver over the Previous Year