Business/Technology Reporter
Quick links: Denver inflation up 2.6% | November imports, exports down | Free tax-prep day | Take the reader poll
When prices go up, people shift their spending patterns. In Colorado, that’s meant scaling back on travel, streaming services and dining out. But cutting back on outdoor activities? Not so much, according to a poll put together by Red Rocks Credit Union.
“We have three of the most premier sports teams in the country and we also have one of the most attractive outdoor scenes in the world,” said Darius Wise, president and CEO of the Littleton-based credit union that wanted to find out more about what customers prioritize.
But what really got his attention was the 83% of respondents that said rising costs have forced changes in how they live and spend.
“That’s a big deal for us,” Wise said. “When they talk about rent and mortgage, utilities and car-related costs, that’s the space where we play, and where we serve our members. We’re honing in to better understand that feedback.”
The little survey, conducted in December, caught Colorado consumers at a time when prices were rising faster than the nation. Between November and January, the Consumer Price Index logged a 0.6% increase in Denver-area prices, according to the latest inflation report from the Bureau of Labor Statistics released Friday.
After being below the nation for most of the past two years, Denver inflation rose by 2.6% in January, compared with 2.4% for the U.S.
But inflation was higher two, three and four years ago. And Denver’s rate being above the U.S. is more the norm, at least for nine of the past 12 years, said Gary Horvath, a Broomfield economist.
“At a high level, the culprit is core inflation,” Horvath said in an email.
Core inflation is the cost of everything except food and energy, which tend to be too volatile. Remove food and energy from Denver’s rate, and prices grew 3.3% over the year, he said. In the U.S., core inflation was 2.7%.
Blame the core products like medical care, up 6.7%; alcoholic beverages, up 6.6%; household furnishings, up 8.8%; apparel, up 9.3%; and personal services, like haircuts, up 9.5% in the Denver area.
At least the gasoline index, which measures all types of gas for automobiles, was down 18.3% in the year. So was the cost of education and college tuition, down 8.6%, and the energy index, including household electricity, was down 9.1% from a year ago.
Food prices continued to increase, up 2.2%. That was largely due to dining out at restaurants, where costs were up 5% in a year. The cost of buying groceries and eating at home, however, was relatively unchanged though it has crept up 3.6% since November.
“There are areas where the rate causes inconveniences for many people,” Horvath said. “We have been spoiled with lower costs for gasoline, but looking ahead, I am concerned about inflation from rate hikes for utilities and inefficiencies from budget shortfalls in state and local governments and schools.”
All of that seems to be what showed up on the Red Rocks Credit Union’s survey. The areas most consumers would cut before giving up sports or the outdoors? Dining out, followed by travel and vacations, then clothing and shopping.
Wise said he hopes it doesn’t have to come to that. At a local credit union, Red Rocks can make decisions faster than a large bank. When the federal government shut down in October, Wise said they let their members know that zero-interest loans were available. Six took them up on the offer. And it wasn’t the first time.
“Members who are in distress, we look for ways to support them during hard times and so that noninterest loan just says to our membership that we’re here for you. You’re not getting a paycheck,” he said. “We want to be that financial institution that helps bridge the gap.”
How tumultuous tariffs impacted Colorado in November
With full-year data on how Colorado fared in international trade last year expected soon, we do have November data for Colorado.
During the month, the value of imports was down 2.2% to $1.21 billion, from November of 2024. That was similar to the year-long trend in imports. But exports also fell 4.6% in November from a year earlier to $827.8 million. That’s the opposite of the trend last year.
Colorado exports grew in the first 11 months last year, up 4% to $10.1 billion from the same period in 2024. Imports shrank 2.3% to $15.1 billion, according to the World Institute for Strategic Economic Research, aka WISERTrade, a Massachusetts research firm that tracks global trade.
“I think the bigger story here is that all of the changes in trade policy (in 2025) only resulted in a slight decline in the import numbers,” Karen Gerwitz, president and CEO of the World Trade Center Denver, said in an email. “I attribute this to uncertainty of trade policy, increased tariffs and the stockpiling of inventory prior to tariffs kicking in.”
Some of the higher tariffs never kicked in, while others were paused, lowered or negotiated. When the United States upped its tariffs on imports from China by 34% in April, which China matched, that trade war quickly escalated to above 100% on both sides, before falling back to a 10% reciprocal tariff rate today.
According to a report from the Office of State Planning and Budgeting, the effective tariff rate Colorado businesses paid on imports was 17.3%, as of December, down from 21% estimated in September. The drop was due to trade agreements with China and new exemptions on some agricultural products.
The report also pointed out that if the U.S. Supreme Court agrees with retailers that the Trump administration’s use of emergency powers to raise tariffs was illegal and should be reversed, the state’s effective tariff rate would drop to 7.1%. As of Friday, the decision was still pending.
Other Colorado companies are interested in the results, including Broomfield-based footwear company Crocs, which sued the federal government in December to try to get a refund of the $54 million it paid in tariffs last year.
“Absolutely no one wins in a trade war, not companies, not consumers, and not Colorado,” Gov. Jared Polis said in an email. “Tariffs are a tax on businesses and stifle innovation. It is disappointing to see the President continue to pursue costly and irresponsible tariffs, increasing prices for all Coloradans, costing Colorado business money, and hurting our international relationships. We are tired of the pendulum swings on tariffs, and are calling for stability, consistency and lower prices.”
Sun economy stories you may have missed
➔ Workers at JBS plant in Greeley prepare to launch nation’s first meatpacker strike in decades. The union is protesting unsafe working conditions and an expired contract, while also supporting Haitian immigrants who could lose TPS status >> Read story
➔ Federal judge stops Trump plans to cut public health funding to Colorado, other Democratic-led states. The federal government had planned to cut grants that funded HIV prevention work and sexually transmitted disease surveillance in Colorado >> Read story
➔ The Michelin Guide expands to cover all of Colorado in 2026. The premier restaurant guide landed in Colorado in 2023 to focus on four major culinary scenes >> Read story
➔ Legislature rejects attempt to let Colorado communities increase taxes on often-vacant homes. House Bill 1036, geared toward addressing the housing shortage in resort communities, would have let the revenue generated by the new taxes pay for affordable housing projects >> Read story
➔ A top Democrat in the Colorado Senate is resigning to take nonprofit job, citing legislative pay. Senate President Pro Tempore Dafna Michaelson Jenet of Commerce City said serving in the legislature has become a financial hardship for her family >> Read story
➔ Why your Colorado property tax bill still increased this year. The state had granted temporary tax discounts in recent years, but they are expiring. At the same time, tax rates paid to schools are also effectively increasing. >> Read story
Take the poll
ICYMI: Is it still tough out there for small business owners, employees and customers? Have a trade/tariff story that Colorado needs to hear? Take the reader poll and please share your story.
Easy-peasy, click here >> cosun.co/WWsmb202026
Other working bits
➔ Free tax prep day all over Colorado on Feb. 21. KeyBank is teaming up with Mile High United Way again for Super Refund Saturday to provide free tax-preparation services for low-to-moderate income households who could use a break.
Bank employees and IRS-certified volunteers will be on-site Feb. 21 at 35 locations from Durango and Rifle to Fort Morgan and Lamar (here’s a map of locations). Tax professionals (volunteer here) provide service for anyone but they’re especially interested in helping families figure out if they qualify for the Earned Income Tax Credit, which could mean a refund.
The Tax Help Colorado program had 525 volunteers help tax filers prepare 11,058 tax returns last year, according to Mile High United Way, which operates the program. That was a 13.2% increase from 2024.
Plan ahead by reading this checklist of what to bring. Walk-ins are welcome but appointments are preferred. More times will be added as volunteers are added. >> Sign up
➔ Denver ties for nation’s second biggest drop in January rents. Online rental listings site Apartments.com reports that 26 metro areas nationwide saw monthly rents increase in January compared with a year earlier. But not Denver. In fact, the company said Denver tied with Phoenix for the second biggest drop in rents, down 3.3%. Austin, Texas, led the decline with 4.8%. Average rent nationwide was $1,713, up 0.2% from December. >> See report
➔ State-facilitated retirement plan tops 100,000 participants. After two years, the Colorado SecureSavings program has passed the six-figure mark, officials announced Thursday. That means more than 100,000 Colorado workers are saving money for retirement who weren’t two years ago. The program is partly mandatory, though. Employers with no employee retirement option must facilitate SecureSavings by taking care of the payroll backend so employees can automatically save a portion of each paycheck. Workers can opt out of the Roth IRA, but the idea behind it is their savings are professionally managed. Returns are much higher than a traditional savings account at a bank — or a box stashed under the bed. >> Earlier
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