Utah continues to see only slight changes in the prices people pay for goods and services. In October, those prices ticked down by 0.2 percent, driven mostly by lower costs in the utilities and medical care sectors.
The 0.2 percent decrease in the Zions Bank Wasatch Front Consumer Price Index (CPI) left the growth rate for the past year at 1.2 percent, below the Federal Reserve’s national inflation target of 2 percent. The national Consumer Price Index increased 0.1 percent from September to October and has grown 1.6 percent over the past year.
Utilities prices declined more than any other measured sector in September, falling 4.3 percent as electricity providers switched to lower winter rates. Prices for medical care declined 2.2 percent in October as prices for several medical care services decreased. Utah continues to remain insulated from rising national medical care prices, which have increased 4.3 percent nationally but have declined 0.3 percent since this time last year in the state. Utilities and medical care expenditures account for nearly 11 percent of the average Utahn’s expenses, resulting in a moderate impact on the overall CPI.
Transportation prices increased 1.1 percent in October as prices for gasoline, vehicles and vehicle maintenance rose, more than offsetting lower prices for public transit and airfares. The price of Brent Crude Oil, the international benchmark for oil prices, fell through most of October as expectations surrounding the impact of an OPEC deal to limit production waned. Last week, futures sat at about $47 per barrel compared to $38 per barrel at the year’s open and $51 per barrel at the beginning of October. In spite of a seasonal drop in demand, gasoline prices increased in October, partly due to closures of ports and fuel terminals in several states threatened by Hurricane Matthew. Gas prices in Utah remain higher than the national average of $2.15 per gallon, averaging $2.33 per gallon at the end of last week. Since this time last year, transportation prices have declined 0.4 percent in Utah and have increased 0.2 percent in the U.S.
“According to AAA’s travel forecast, a million more Americans are expected to travel this Thanksgiving than last year,” said Scott Anderson, Zions Bank president and CEO. “Consumers are taking advantage of relatively low transportation prices and signaling their confidence in their personal financial situations as well as the overall economy.”
Prices for other goods and services increased 1.1 percent, as prices for personal care products, cosmetics and laundry services increased, offsetting lower prices for smoking and tobacco products. Prices in the clothing sector increased 0.2 percent in October as prices for women’s apparel increased. Combined, these two categories account for 8 percent of the average Utahn’s expenditures, resulting in a minor impact on the overall CPI.
Recreation prices fell 0.9 percent in October as prices for some pets and pet products declined. Prices for education and communication decreased 0.5 percent as tuition rates for some elementary and high schools declined.
Food at home prices increased 0.6 percent in October as prices for a variety of fruits and produce rose. Meanwhile, prices for food away from home increased 0.2 percent as prices for alcoholic beverages and fast food and snacks rose slightly.
Prices for the housing sector declined 0.1 percent as hotel and motel rates fell, and prices for furniture and home appliances decreased. Prices in the housing sector as a whole have increased 2.7 percent since this time last year. Specifically, prices for homes in Utah have fared even better, rising 7.8 percent in the past year compared to a national increase of 6.3 percent.
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