Transportation expenses continue to be a major factor in the overall cost of living along the Wasatch Front. Due, in part, to a 2 percent drop in the cost of getting around, the Zions Bank Wasatch Front Consumer Price Index (CPI) decreased 0.6 percent from October to November. The index has increased 1.9 percent since this same time last year, which is very near the Federal Reserve’s national inflation target of 2 percent. The national Consumer Price Index decreased 0.2 percent from October to November and has increased 0.5 percent over the past year.
Transportation expenses continue to be a major factor in the overall cost of living along the Wasatch Front. Due, in part, to a 2 percent drop in the cost of getting around, the Zions Bank Wasatch Front Consumer Price Index (CPI) decreased 0.6 percent from October to November. The index has increased 1.9 percent since this same time last year, which is very near the Federal Reserve’s national inflation target of 2 percent. The national Consumer Price Index decreased 0.2 percent from October to November and has increased 0.5 percent over the past year.
Transportation prices were a primary driver of the decrease in Utah’s November CPI, partly due to lower insurance rates. But gasoline prices have continued their steady, months-long decline, accounting for the greatest impact on falling transportation prices. Gasoline prices in Utah are still higher than the national average of $2.01 per gallon. Since Utah’s gasoline prices typically trail the national average by four to six weeks, Utah can expect prices to flatten out for several weeks after national prices begin to increase again. Gasoline prices in Utah averaged $2.05 per gallon in late December.
“Falling energy prices signal some concern about the global economy,” said Scott Anderson, Zions Bank president and CEO. “But as Utahns continue to save on utilities and transportation expenses, these trends can be expected to help lead to a strong holiday shopping season that will lift both local and global businesses.”
Housing prices have a large impact on the average Utahn’s expenditures, which makes price trends in November broadly impactful across the state’s economy. Housing prices declined 0.5 percent in November due to decreases in appliance and maintenance costs, as well as slightly lower apartment prices. Housing prices in Utah have declined in November the past three years, as hotel and motel prices and apartment prices typically go down heading into the colder months.
On the other hand, while prices for education and communication services increased more than all other sectors, rising 1.7 percent from October to November, education and communication expenses account for just 6.5 percent of the average Utahn’s income. As a result, significant fluctuations in these prices have a relatively small impact on the overall CPI.
Food away from home prices dropped 2.1 percent from October to November — a greater drop than any other sector—as prices inched lower at some fast food establishments. Food at home prices dropped 0.7 percent from October to November, as apples, bananas, pears and lettuce dropped in price. The decline was tempered by increases in prices for bell peppers, flour and prepared mixes. Producer prices rose nationally in November in response to increased costs of services, though the overall trend continues to indicate weak inflation pressures. For comparison, U.S. producer prices increased 0.3 percent in November and have decreased 1.1 percent from a year ago.
A few other categories contributed marginal increases to the CPI in November, although their impact was minimal. Recreation prices increased by 0.7 percent, and medical prices increased 0.2 percent as services and prescription drugs rose in price. Similarly, other goods and services prices increased by 0.3 percent. In contrast, utilities prices decreased by 0.2 percent, and clothing prices decreased 0.9 percent from October.
Analysis and data collection for the Zions Bank CPI and the Zions Bank Consumer Attitude Index are provided by the Cicero Group, a market research firm based in Salt Lake City.
Read more:The Enterprise - CPI drops by 0 6 percent in November
