Falling home-energy prices caused local inflation to cool off in the first half of 2007, the federal Bureau of Labor Statistics said.

Denver-Boulder-Greeley metro inflation was 2.5 percent in the first half of 2007, down from 3.8 percent in the first half of 2006. It was also lower than the 3.4 percent rate recorded in the second half of 2006.

"It's moderating, much like the national numbers," said economist Richard Wobbekind of the University of Colorado's Leeds School of Business.

July's national inflation number was 2.4 percent.

In the Denver area, energy prices, which include prices for motor fuels and household fuels and utilities, were 0.6 percent lower than in the first half of 2006. A year ago, inflation in that category was 15.4 percent.

That number, however, contains falling home-energy costs and increased prices for filling the gas tank.

Fuels and utility prices used in housing dropped 5.1 percent, driven by a 12.6 percent decline in piped natural gas.

Motor fuels used for transportation gained 5.9 percent in the period.

Apparel prices were up 1.4 percent from the first half of 2006. But when compared with the second half of 2006, they actually fell 8.2 percent.

"You're starting to see some of the effects of the national slowdown," Wobbekind said, noting that major retailers like Wal- Mart have reported underwhelming sales numbers.

What's up?

• Categories of spending in the Denver-Boulder-Greeley area, ranked by highest inflation to lowest:

Medical care   +8.9 percent

Education and communications   +4.5 percent

Other goods and services   +3.9 percent

Food and beverages   +3.7 percent

Housing   +1.9 percent

Apparel   +1.4 percent

Transportation   +0.9 percent

Recreation   +0.8 percentCompares Prices In The First Half Of 2007 To The First Half Of 2006, As Calculated By The Federal Bureau Of Labor Statistics

Finance Editor David Milstead can be reached at milstead@RockyMountainNews.com or 303-954-2648.