Honolulu's inflation rate doubled in 2016

Honolulu's inflation rate doubled in 2016

HONOLULU (AP) - Federal statistics show Honolulu inflation doubled to 2 percent last year, but state economists say the inflation rate is still lower than Hawaii's historical average.

The Honolulu Star-Advertiser reported Thursday that economist Eugene Tian says consumers' purchasing power remains strong because of rising personal income and an inflation rate that's lower than the 2.2 percent average from 1995 to 2015.

The consumer price index - the most widely used measure of inflation -for Honolulu last year increased from 1 percent in 2015. Last year marked the city's largest year-over-year increase for inflation since it grew by 2.4 percent in 2012.

Tian says the increase in inflation isn't surprising because the drop in energy prices from 2015 to 2016 wasn't as large as it was during the previous one-year period.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.