High gas prices going higher

Get used to it. And get ready to pay more.

High gas prices are here, likely will be here for the foreseeable future and should soon start impacting consumer spending on a broader scale, if they haven't already, according to a report released Tuesday by Wells Fargo Bank.

The July Wasatch Front Cost of Living Report showed a 0.3 percent increase in consumer prices, led by a 1.7 percent jump in transportation prices. All other categories held steady, save for a 0.3 percent decline in the price of groceries.

The Utah report showed more steadiness than the national consumer prices report, also released Tuesday. The U.S. Labor Department's Consumer Price Index showed a 0.5 percent spike in July, the biggest increase in three months. Overall inflation for the month was driven higher by a 3.8 percent jump in energy costs, according to the Labor Department report. Gasoline prices rose 6.1 percent in July, while food costs increased 0.2 percent, the department reported.

However, outside of food and energy, prices remained well behaved. The core inflation rate edged up by just 0.1 percent in July. This price category, which is closely watched by the Federal Reserve, was helped last month by a 1 percent drop in new car prices, the biggest one-month decline in more than 30 years.

While current data doesn't indicate that gas prices have significantly affected consumer spending, Wells Fargo executive vice president Kelly K. Matthews said there are signals that it's only a matter of time.

"Perhaps the biggest evidence yet from an aggregate economic point of view was the July consumer confidence survey, which declined abruptly," Matthews said Tuesday. "Now, can I prove that all of that is due to gas prices? No. There's probably worries about the war and whatever else. But my impression is that we will see some clearer evidence in terms of consumer spending habits with gasoline prices where they are now, or where they may continue."

AAA Utah reported Tuesday that gas prices continue to set daily records. The average price of a gallon of regular unleaded gasoline in Utah was $2.40 at last count, AAA reported. That was a 2 cent jump over Monday's price, and up 50 cents from a year ago.

Nationally, AAA reported that the average price for a gallon of gasoline was $2.54, 4 cents higher than Monday's price and 66 cents more than the year-ago price.

All of the Utah cities surveyed by AAA reported increases. Salt Lake City reported a 7 cent jump over the last month, to an average price of $2.33 per gallon, while the average per-gallon price in Provo jumped 10 cents to $2.33. St. George reported a 9 cent increase over the last month, to an average price of $2.42.