Consumer prices continue to inch upward in Utah

Summer rates for water and sewer were the major contributors to a small uptick in consumer prices along the Wasatch Front from June to July. The Zions Bank Wasatch Front Consumer Price Index (CPI) rose 0.2 percent from the previous month. The utilities costs had the largest impact on the month’s increase, while other sectors experienced either modest increases or slight drops. 

The national Consumer Price Index decreased 0.1 percent from June to July and has increased 1.6 percent from this time last year. Medical care prices also increased 1.6 percent as prices for prescription drugs and dental care increased.

National gasoline prices were up to $2.36 last week from $2.26 a month ago, while Utah gasoline prices decreased to $2.47 from $2.50 in the same time period.

{mprestriction ids="1,3"}“Since the beginning of the year, we’ve witnessed steady and sustained price increases statewide,” said Scott Anderson, Zions Bank president and CEO. “Moderate inflation incentivizes companies to produce more goods, which will likely lead to more jobs and higher rates of employment within the overall economy.”

The rise in Utah’s overall CPI was also driven by higher prices in the following categories:

• Food-away prices rose 0.6 percent as prices for full-service meals increased slightly.

• Education and communication prices increased 0.5 percent as college tuition rates increased in anticipation of the new school year.

• Housing prices increased 0.2 percent as housing rental rates and hotel rates increased over June.

Utah’s price increases were slightly offset by lower prices in the following sectors:

• Transportation prices fell 0.7 percent due to decreases in statewide gasoline prices.

• Food-at-home prices fell 0.5 percent as fruit prices decreased in July.

• Recreation prices fell 0.2 percent due to price drops for pet care products.

“Housing prices have continued to increase within the economy,” said Randy Shumway, chairman and partner at Cicero Group, a Salt Lake City market research firm that does data collection and analysis for the CPI. “Generally, gently rising housing prices encourage consumer spending and economic growth, putting Utah’s economy in a great position heading into the final months of summer.”{/mprestriction}