Although it isn’t much, the increase in prices that Utah consumers are paying is running ahead of the national average. The Zions Bank Wasatch Front Consumer Price Index (CPI) increased 0.2 percent from October to November and is up 3.3 percent in the past year, while the National Consumer Price Index has increased 2.2 percent in the same period.
Still, prices within the state have remained relatively stable in recent months, a good sign for Utah consumers and businesses. Moderate and stable levels of inflation within an economy are signs of economic growth and vitality, economists say. For example, moderate levels of inflation help to lower the real value of debt within an economy, encouraging greater investment from both consumers and businesses.
Utah in general has witnessed tremendous growth in demand within certain sectors, especially within the housing market, as housing prices for residential homes statewide have risen nearly 10.1 percent since October of last year, according to CoreLogic.com. Only Washington state has higher housing price growth nationwide.
Business investment within the state has also been strong. Large tech companies have moved to the Beehive State because of Utah’s prolonged and consistent economic growth.
“As companies continue to increase capital investment within the state, I see no reason the statewide economy shouldn’t continue to grow,” said Scott Anderson, Zions Bank president and CEO. “Increased capital investment statewide should boost the amount of jobs available to Utahns, thus boosting statewide GDP and the standard of living for residents along the Wasatch Front.”
Although prices in November remained relatively flat, Utah did witness slight price increases in the following sectors:
• Medical care prices increased 1.8 percent in November as prices for prescription drugs increased.
• Education and telecommunications prices increased 1.4 percent in November as child care and Internet provider prices increased.
Price increases were largely offset by price decreases in the following sectors:
• Recreation prices decreased 4.2 percent as prices for television providers decreased significantly in the month of November.
• Utilities prices decreased 1 percent as utility providers decreased prices for water and other utilities heading into winter.
“Inflation within the state has remained low and steady during the last couple of months,” said Randy Shumway, chairman and partner at Cicero Group, a Salt Lake City-based market research firm that does data collection and analysis for the CPI. “Stable inflation is the heart of a healthy economy and I believe that monetary policy makers can continue to improve our economy through intelligent inflationary controls.”