Inflation in Colorado continued to slow in July, a welcome development for consumers and federal regulators who have been battling rising prices across the U.S. for more than two years.

According to the U.S. Bureau of Labor Statistics, prices in the Colorado metropolitan area, which is tracked by the federal government and includes Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties, rose 1.9 percent in July from a year earlier, the smallest increase in more than three years.

Denver’s inflation rate is lower than the rest of the U.S. Falling energy prices have been a boon for Colorado residents over the past year, labor market data show. Gasoline prices, while up slightly this summer as people drive more during the warmer months, are down 12 percent compared to the same time in 2023.

In the grocery store, a particular pain point for consumers, prices remained largely unchanged in August compared to the previous year. But eating out is becoming increasingly expensive. The cost of food in restaurants rose by 5.7 percent.

Other things that cost more than a year ago include housing, tuition fees and childcare. Things like cars and clothing are significantly cheaper.

Economists expect the Federal Reserve to begin cutting interest rates next month. This will make it cheaper for Colorado residents to borrow money. High interest rates are most evident in the real estate market. Mortgage rates are already falling in anticipation of lower rates in the coming months.