The Denver region’s inflation is continuing to stay below 2%, the Federal Reserve’s ideal annual rate for a healthy economy.

The Denver-Aurora-Lakewood metropolitan area recorded 1.4% inflation year-over-year in September, below the national average of 2.4%, according to the latest report from the Bureau of Labor Statistics.

It was tied for the second-lowest inflation rate for U.S. metros alongside San Bernardino, Calif., both following the Tampa Bay region with 1.2%.

The federal agency tracks the country’s 23 urban regions in two batches, with data being released every other month. Cities with data for August had an inflation range between 3.8% in Chicago and 1.5% in Urban, Alaska.

Chicago, one of three cities the agency tracks every month, had the highest inflation in September at 4%. 

July marked the first time Denver saw its inflation fall below 2% since 2021, before prices surged. 

Prices in Denver remained unchanged in the two-month period covering August and September, according to the bureau.

The cost of items not including food and energy rose 2% year-over-year in Denver. Energy fell 8.7%. Food costs have gone up 2.1%.

The lower inflation doesn’t mean items are cheaper in Denver. Prices have soared since 2020.

The cost of items around Denver have risen nearly 22% since the COVID-19 pandemic, the 13th-highest nationwide, according to a Pew Research Center study released Oct. 4.

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The analysis found Denver saw the highest price increases since the pandemic for the “food away from home” category from other cities, commonly considered a measurement for eating out at restaurants.

Tampa Bay had the smallest restaurant cost increases since 2020 at 22.6%, Pew found. Denver had the largest change nationwide with menu prices going up 35% over the past four years.

The largest weighing factor in calculating inflation is housing. Economists attribute much of Denver’s cooling inflation to its cooling housing market.

Home prices have begun to dip after a slow selling season and a large influx of homes listed on the market. The region is also undergoing a boom in apartment construction, which has helped keep rent prices stable.