Consumers in Colorado, as around the country and world, are up against steeper increases in the price of goods and services than have been observed since the 1980s, legislative analysts told state lawmakers Thursday.
Average consumer prices were 7.9% higher in January of this year than they were in January of 2021, the analysts reported. Inflation in the energy and transportation sectors was particularly steep — at least 21%, in each case — while prices for food, housing, apparel and other necessities rose at above-average levels.
The analysts expect inflation of 7.1% on average in Colorado through 2022, and 3.8% in 2023. The figure is based on data from the Denver-Lakewood-Aurora metro, which in normal years experiences inflation of about 2.5%. Analysts expect inflation here to get back to normal by 2024.
Lauren Larson, budget director for the state, worries still about risks to that projection.
“There’s a lot of uncertainty around what’s going to happen with inflation, what’s going to happen with (gross domestic product),” she said.