Honolulu’s inflation rate remains flat

Honolulu enjoyed the smallest inflation rate in several years as consumer prices rose 0.3 percent in the first half of 2009 compared to the first half of 2008. Reflecting a 15 percent drop in the cost of fuel and utilities, the rate also reveals how the recession has depressed demand for many consumer goods. By comparison, the inflation rate rose 4.9 percent in the first half of 2008.

According to the U.S. Labor Department, goods and services that cost $100 in 1967 in Honolulu would have cost $228.07 in the first half of 2009.

While many commodity prices fell, the price of housing was up 0.8 percent, the U.S. Labor Department reported on Aug.14. Also showing year-over-year increases were the cost of groceries and restaurant food, each up 5.9 percent, and the price of alcoholic beverages, up 2.1 percent. The price of clothing saw an 8 percent gain over last year.

Other categories saw decreases. Fuels and utilities were down 15.1 percent during the first six months compared to last year. The cost of electricity dropped 25 percent over last year and piped gas slipped 28.2 percent. The transportation index fell by 11 percent from the first half of 2008. Gas prices were down 32.6 percent compared to the same period a year ago.

Other Western cities saw lower consumer prices, including Phoenix and San Diego, which experienced 1.3 percent and 0.6 percent decreases, respectively. Prices in Anchorage, Alaska, rose 1.3 percent. Nationally, the consumer price index decreased 0.2 percent in July.