From Deseret News archives:

High gas prices going higher

And they're fueling boost in consumer prices

Published: Wednesday, Aug. 17, 2005 9:18 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
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.

Story continues below
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.

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

I find it interesting that many of the same people who say that we can't...

Cougs begin bowl preparations

None of these teams is going to be easy. They all have fine football...

Max Hall issues apology

Max, no apology was necessary, but the apology was polically correct. If...

Very good piece of writing, Amy. You summarized what many of us have been...

U. eyes bowl for redemption

How is a top 25 finish make Utah a top twenty team? I think what the poster...

Max Hall issues apology

90% of the BYU & Utah fans have class, and Hall knows it. If you don't...

This might be my favorite article I've ever read from the Deseret News. Kudos.

Y. student vanished in China

Thank you for not giving up and don't give up now brother and sister...

Child prostitutes don't get help

Dr. Lois Lee's work with children who are victims of child sexual...

Look at the preview for Pixar's "Up". The whole move is summarized in...

Advertisements