As the year comes to a close, prices in the Denver metro region are rising at slower levels not seen since before the pandemic.

Inflation in the Denver-Aurora-Lakewood metropolitan area was at 2% from November 2023 to 2024, according to data from the Bureau of Labor Statistics released Thursday, below the national average of 2.7%.

In August, Denver’s inflation fell below the Federal Reserve’s target rate for a healthy economy of 2% for the first time since 2021. It has stayed near that level over the last four months.

Recent numbers show that Denver’s inflation is returning to some normalcy after recording 5.2% inflation in 2023 and 8% in 2022, according to federal data. But the stabilization hasn’t been even — and the high prices spurred by the period of inflation surging may be a new normal.

Federal inflation data is heavily weighed by housing costs, accounting for 45% of the consumer price index.

Colorado-based economists told the Denver Gazette in August that Denver’s cooling inflation is largely driven by a slower housing market. The Denver region has seen an influx of new apartments that kept rents stable throughout the year. The housing market has been fairly unpredictable as the market was flooded with houses for sale but buyers were hesitant to close deals.

Federal data reports housing costs in Denver rose nearly 1% year-over-year.

The region saw some of the largest increase in prices in 2024 across food, transportation and childcare costs.

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The average price of food around Denver surged higher than the national average at 3.6% over the last year, and the food away from home index tracking restaurant costs was higher at 5.6%.

Across the U.S., food prices rose 2.4%.

Cereal and bakery prices surged nearly 3% and meats, poultry, fish and eggs went up 1.9%.

High inflation is still a concern for Colorado’s economy.

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The 2025 economic outlook for the state — published earlier this week from the University of Colorado Boulder Leeds Business Research Division — listed inflation as one of the top risks for the state’s economy next year. It continues to cut into profits for local restaurants due to the rising cost of food, labor, rents and taxes, the report said.

The scale of President-elect Donald Trump’s proposed tariffs on other countries is also expected to bring some inflationary pressure, the economists said, though it’s still unclear by how much.

Transportation costs are up 5.4% in the Denver area, according to federal data.

The cost of tuition, school fees and childcare rose 3.6%, year-over-year.

Meanwhile, the largest declines were in energy, gasoline and clothing.

Overall energy costs fell by 8%, the largest rate of decline in the metro area. 

The price of clothing also saw costs fall by 2%.