Honolulu inflation is heating up as the state’s economy continues to grow.
The consumer price index — the most widely used measure of inflation — jumped by the largest amount since 2012 as it rose 2.5 percent during the first half of 2017 from the same period a year ago, according to data released today by the U.S. Bureau of Labor Statistics.
Energy prices, particularly gasoline, were the main driver behind the increase. Energy prices jumped 15.4 percent during the 12-month period with gas costs up 20.4 percent and electricity rising 11.8 percent.
The 12-month rise in overall inflation was the highest in five years when inflation rose 2.8 percent. The 1.6 percent increase during the first half of 2017 from the second half of 2016 was the highest for any six-month period since 2015 when the CPI rose 1.8 percent during the second half of that year from the first half.
Honolulu’s inflation easily outpaced the nation’s, which was up 2.2 percent during the first six months on a year-over-year basis. The U.S. change in CPI from the last six months of 2016 was only 1.2 percent.