Is Inflation Easing? See How Colorado Is Affected

COLORADO — A new government report Wednesday shows inflation eased slightly in April, but prices for many necessities continue to cause pain for residents of Colorado.

Prices rose 8.3 percent compared to April 2021, and 0.3 percent compared to March, according to the U.S. Bureau of Labor Statistics report. The April-over-March increase in the Consumer Price Index was the smallest monthly increase in seven months.

The biggest increases were for shelter, food, airfares and new cars. Nationally, food prices were up 0.9 percent, including groceries, which rose a full percentage point.

Of particular note, dairy prices increased for the 17th consecutive month, up 2.5 percent from March, the largest increase for the dairy index since July 2007. Over the past year as a whole, grocery prices have increased 10.8 percent, the largest year-over-year increase since 1980.

In Colorado, the prices of dairy products increased by 2.3 percent from March, and 7.8 percent from last April.

The prices on pantry staples such as cereals and bakery products rose .8 percent from March in Colorado. The prices of fruits and vegetables also rose .5 percent from March.

Gas prices, though still averaging a record $4.40 a gallon nationally and $4.117 in Colorado, fell 6.1 percent from March to April, offsetting increases in the indexes for natural gas and electricity, according to the report.

Overall, gas prices have increased 44 percent from a year ago, and data from AAA shows prices have steadily increased so far in May.

One month of data isn’t enough to show if inflation is headed downward, economists, note. And there are signs in the report that inflation is becoming embedded in the U.S. economy, The Associated Press reported.

When the volatile food and energy prices — driven higher by persistent COVID-19 pandemic supply chain issues and, more recently, Russia’s war in Ukraine — are taken out of the mix, the so-called core inflation on goods and services increased 0.6 percent from March to April, twice the 0.3 percent rise from February to March.

Core inflation rises more slowly, the AP explained, but can take longer to decline. For example, rent is rising at a historically fast pace, up 0.6 percent from March to April. Hotel costs are up, too, 1.7 percent from March to April, following a 3.3 percent increase from February to March.

Persistent inflation is a political problem for President Joe Biden, and a financial problem for many Americans, especially those on fixed incomes who are making tough choices at the grocery store and gas pump.

Patty Blackmon, who lives in Las Vegas, told the AP that $5.89-a-gallon gas prompted her to reduce the number of trips she makes to the grocery store and her grandchildren’s sporting events. She hasn’t decided if she’ll make a road trip to see relatives in Arkansas this summer, hasn’t visited her hairstylist in 18 months, and is buying more canned soup and salad ingredients at the grocery store.

“A steak is almost out of the question,” she told The AP.

The Associated Press contributed to this report.