The inflation rate in Alaska's largest city last year was at its lowest level in nearly three decades, largely related to falling energy prices.
A report released Friday by the Alaska Department of Labor and Workforce Development found that Anchorage's inflation rate of 0.5 percent in 2015 was the lowest recorded since 1988.
Energy costs in Anchorage fell by more than 10 percent in 2015, with gas prices alone dropping nearly 25 percent, according to the report. Those numbers are measured by the Anchorage Consumer Price Index. The cost of transportation, closely tied to energy prices, fell nearly 7 percent.
While consumers might look kindly on low inflation, state economist Neal Fried said determining if it's good or bad to be so low, is more complicated.
"It's got sort of a double-edged sword to it," he said. "Generally speaking, low inflation is considered a good thing," but the fact that it's tied to lower energy prices "doesn't bode well for us" as a state that depends on oil revenue.
The highest inflation rate in Anchorage in the past 10 years was in 2008, at 4.8 percent.
Costs for food and clothing also grew slightly last year, but still less than their recent averages. Housing was one standout, the report said. The cost of housing in Anchorage went up 2.4 percent last year, slightly above a 10-year average of 2 percent.
Fried explained that's not just the price of a home, but the cost of actually living in one -- including things like insurance and utilities.
The inflation rate is a key economic figure tied to the minimum wage, bargaining agreements, real estate and other types of contracts.