Local cost of living 8.1 percent below national average

It may not be much comfort if you're out of work or have had a pay cut, but prices in Colorado Springs are rising more slowly than in the rest of the nation. At the end of the first quarter, prices here were at their lowest point in 18 years when compared with the national average, according to a quarterly survey of 309 metropolitan areas by the Arlington, Va.-based Council for Community and Economic Research.

A slumping economy, falling gasoline prices and smaller increases in electric and natural gas costs than those in the rest of the nation pushed local living costs to 8.1 percent below the national average in the first quarter, the council said. That is the lowest level the group's cost-of-living index has been since the first quarter of 1991.

"Hopefully this will be a tool to help attract business to expand here. It certainly worked 18 years ago and helped turn around the economy then," said Fred Crowley, senior economist for the Southern Colorado Economic Forum. "Colorado Springs already has a well-educated work force and low taxes. The city should be able to turn this into a positive (factor) to help recruit business, especially once the national economy finally recovers."

The council's cost-of-living index doesn't measure inflation, but instead compares prices for 57 goods and services bought by households headed by middle managers. It's designed to compare living costs for people moving to another city.

The local index fell mostly because the transportation component, which primarily measures gasoline prices, went from less than 1 percent below the national average during the fourth quarter to 11 percent below the average in the first quarter. Local gasoline prices fell 55.5 percent in the first quarter.

A smaller rise in electricity and natural gas costs in the Springs than the national median cost also played a role in the overall index falling. The utility component was nearly 17 percent below the national average. Local electricity and natural costs rose 3 percent from a year earlier, which also ranked as the 9th lowest in the nation. The national median for those costs jumped 8.6 percent during the same period.

Other components measuring housing, grocery and medical costs rose slightly compared to both the previous quarter and a year earlier. Local housing costs, the largest index component, still remained well below the national average.

Among other cities in the state, living costs in Boulder were 24.7 percent above the national average, while Denver was 1.9 percent above the average.