Denver-area inflation surges to highest level since 2022

If your wallet has been feeling a little lighter lately, the numbers back you up. Metro Denver’s inflation rate climbed to 5% in May — its highest reading since 2022 — according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index for the Denver-Aurora-Lakewood area rose 5% between May of this year and May 2025, driven primarily by a staggering 25.3% surge in energy costs, including a 41.8% spike in gasoline prices. The culprit? In large part, the ongoing conflict with Iran, which has sent fuel prices climbing across the country.

Denver’s inflation rate is also running hotter than the national average, which came in at 4.2% for May — itself the highest level nationally since April 2023. It’s a sharp reminder of how quickly things can change. Denver-area inflation had surged as high as 8% following the pandemic in 2022, then fell to 5.2% in 2023 before gradually cooling off — only to creep back up again. And it’s not just gas. Food costs are also on the rise, adding more pressure to household budgets across the Front Range.

The jump is raising fresh concerns about the broader Colorado economy at a time when many residents are already navigating high housing costs and a challenging job market. For now, economists are watching closely to see whether this is a temporary spike tied to global tensions or the start of a more stubborn inflationary trend. Either way, Denverites are feeling it every time they pull up to the pump.