Inflation Hits Colorado

admin May 22, 2011 0

The rate of inflation in Colorado and other western US states rose in April due to increasing gas prices, according to the recent monthly Consumer Price Index (CPI) report for the region.

The West saw the largest year-over-year increase in consumer prices last month, up three percent from the previous year, and 0.6 percent higher from the previous month, when prices climbed 2.6 percent.

Year-over-year gains in the CPI for the region hit 1.9 percent and 1.4 percent in February and January 2011 respectively, and 1.3 percent in December 2010.

For the period between January and November 2010, the region posted less than one percent year-over-price hikes each month.

Compiled by the Bureau of Labor Statistics (BLS) of the United States Department of Labor, the CPI serves as a measure of inflationary pressures. It gauges the cost of consumer expenses, from haircuts to housing.

The CPI for the West is not adjusted seasonally, thus year-over-year comparisons are regarded most valid.

The increase in prices in April was largely attributed to transportation costs, which rose 10.6 percent higher from the previous year.

Medical care costs were up 3.1 percent over the year, while food and beverage prices surged 3.4 percent.

Meanwhile, recreation costs in the region fell by 0.4 percent over the year.

Aside from Colorado, other states covered by the report are Wyoming, Washington, Utah, Oregon, New Mexico, Nevada, Montana, Idaho, Hawaii, California, Arizona and Alaska.

The “All Consumer Price Index for All Urban Consumers” for the region also went up to 227.837 last month. This means that a market basket of services and goods costing $100 in 1967, the benchmark period of the index, would have cost $227.84 in April.

On the national level, consumer prices saw a 3.2 percent increase last month from a year ago, seasonally adjusted. This was the largest year-over-year increase of the index since October 2008.

Nationwide, prices also climbed 0.4 percent from March to April.

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