The housing shortage and resultant increases in average home prices have begun to take their toll on consumer prices. The Zions Bank Wasatch Front Consumer Price Index (CPI) ticked upward in April, rising 0.4 percent from the previous month and 2.8 percent from April last year, with housing prices having the largest impact on the increase.
Meanwhile, the national Consumer Price Index increased 0.3 percent from March to April and 2.2 percent over the past 12 months.
Gas prices also continue to impact the CPI. While national gasoline prices have decreased slightly over the past month, Utah prices have continued to push upward, although at a slower rate than in recent months. The national Consumer Price Index increased 0.3 percent from March to April and 2.2 percent over the past 12 months.
Housing prices drove the overall CPI increase as apartment rates, hotel and motel rates, and furniture prices rose in addition to home prices. In line with the housing-related increases registered in the Wasatch Front CPI, Core Logic reported that home prices in Utah increased 2.8 percent from March to April.
Food-away-from-home prices also increased at a rate of 1.2 percent from March to April due to higher prices for fast food meals.
“Utah’s economy is gearing up for more growth,” said Scott Anderson, Zions Bank president and CEO. “Home values continue to increase as Utah becomes more and more attractive as a market for professionals and families looking for good jobs and a great place to live.”
The rise in Utah’s overall CPI was also driven by higher prices in the following categories:
• Education and communication prices rose 0.7 percent as elementary and high school costs increased at the end of the school year.
• Other goods and services rose in price by 0.9 percent as haircuts and related expenses increased ahead of summer.
Utah’s price increases were slightly offset by lower prices in the following sectors:
• Transportation prices fell 3.8 percent as vehicle prices and vehicle rentals dropped.
• Utilities prices dipped as lower summer gasoline rates were put in place.
• Food-at-home prices dropped 1.1 percent as prices for bell peppers, tomatoes and citrus fruits declined.