Consumer prices along the Wasatch Front remained steady from September to October, remaining up 2.9 percent from a year ago. The Zions Bank Wasatch Front Consumer Price Index (CPI) remained unchanged while the national Consumer Price Index has increased 1.8 percent since October of last year.
The price of utilities dropped 1.9 percent in October as the price of electricity decreased. The drop counterbalanced slight increases in several other industries, including other goods and services (1.3 percent), housing (0.1 percent), food at home (0.3 percent) and clothing (0.5 percent). The small bump in housing prices from September to October ended a two-month streak of falling prices in the sector.
Although housing prices were again the primary driver of year-over-year price growth, this is the fourth straight month that 12-month housing price growth (now at 3 percent) has slowed for the sector. A jump in prices in the recreation sector was the second-most-significant driver of 12-month price growth. Recreation sector prices have grown 12.9 percent since October 2018, the highest jump since Zions Bank began the Wasatch Front Consumer Price Index in 2010.
According to the national Bureau of Economic Analysis, consumer spending in Utah grew at a rate of 7.3 percent from 2017 to 2018 — faster than in any other state. Higher consumer spending often comes as a result of higher consumer incomes, overall price growth and greater consumer confidence. In Utah’s case, the upsurge in consumer spending is likely due to all three, according to Randy Shumway, chairman and partner at Cicero Group, a Salt Lake City management consulting firm that does data collection and analysis for the CPI.
“In the second quarter of this year, Utah had the nation’s fourth-highest personal income growth rate and sixth-highest GDP growth rate,” Shumway said. “This means Utahns have more to spend and, as we’ve seen in past consumer attitude surveys, are quite confident in the overall economy. Add to that our continued modest price increases and it is not surprising to see Utah consumers spend more.”