The U.S. Bureau of Labor Statistics today said that the consumer price index for Honolulu rose 2.2 percent in the first six months this year compared with the year-earlier half.
That compares with a national inflation rate of 2.8 percent for the first half this year and a local inflation rate of 2.2 percent in the second half of 1995.
Between the second half of 1995 and the first half this year, the local inflation rate grew only 0.6 percent, the bureau said.
"For the foreseeable future, I don't see inflation as a threat, locally or nationally," said Leroy Laney, chief economist for First Hawaiian Bank.
Laney said the latest local inflation numbers "are no surprise" given that the soft local economy is putting a lid on local costs. Housing prices are down and the state has been losing jobs since 1992, he said.
"We are recovering but we're not putting any inflationary pressure on the economy," said Laney, noting that the methodology used in the local consumer price index may actually overstate Honolulu's inflation rate.
"We're still losing jobs," Laney said.
More than half of the latest increase was due to higher housing and transportation costs, the bureau said.
The housing component of the index, a driving factor in Hawaii's high cost of living, rose 2 percent in the first half from the year-earlier period as homeowners' expenses and renters' costs both increased 1.9 percent.
Reflecting higher gasoline prices during the half, transportation costs rose 3.9 percent.
The overall food and beverages category rose a mild 0.3 percent from the first half of 1996 from the same period last year as costs in some segments were lower.
Grocery prices dropped 1.2 percent. Costs for fruit and vegetables dropped 1.8 percent and meat, poultry, fish and eggs prices declined 1.2 percent. Prices for dairy products rose 2.3 percent.
The cost of eating out was up 1.2 percent and prices for alcoholic beverages increased 1.3 percent. The cost of medical care, which for many years led the survey with double-digit increases, rose just 3.4 percent.
Apparel and upkeep costs, meanwhile, rose 1.6 percent as prices for men and boys' clothing dropped 1.7 percent and women and girls' wear remained flat. Shoe prices rose 3.1 percent.