Higher summer usage for electricity and water caused utility rates to rise and the Zions Bank Wasatch Front Consumer Price Index (CPI) showed a corresponding rise in May. The index ticked upward, rising 0.5 percent from April. Communications costs also went up as phone companies increased the prices of monthly plans. Other sectors experienced either modest increases or slight drops.
The national Consumer Price Index increased 0.1 percent from April to May.
Housing prices continued to increase at a rate of 0.2 percent from April to May due to higher apartment rental rates and hotel rates.
“With food prices maintaining consistency and only minor price changes in areas like recreation, we should see consistent discretionary spending being injected into the economy this summer,” said Scott Anderson, Zions Bank president and CEO. “Consumer spending boosts sales for local and state businesses, and in turn helps Utah’s economy continue to grow.”
The rise in Utah’s overall CPI was also driven by higher prices in the following categories:
• Transportation rose in price by 0.8 percent as rental car and car insurance rates increased.
• Recreation prices increased by 0.5 percent as pet care prices increased in anticipation for the summer.
Utah’s price increases were slightly offset by lower prices in the following sectors:
• Medical care prices decreased 0.1 percent as pediatric care and dental care prices decreased.
• Food-away prices fell 0.5 percent as fast-food restaurants decreased prices for meals.
“Our housing market continues its healthy expansion and our robust economy is becoming more and more attractive to potential new residents,” said Randy Shumway, chairman and partner at Cicero Group, a market research firm based in Salt Lake City that does data collection and analysis for the CPI. “Utah is in a good spot heading into the heat of the summer.”