Wasatch Front's cost of living up

Rising prices for food, gas and even clothing are partly responsible for a 1 percent rise in the cost of living along the Wasatch Front in March.

A Wells Fargo Consumer Price Index report released Wednesday shows that the local consumer price index slightly outpaced the national increase of 0.9 percent. Nationally, when the numbers are seasonally adjusted, consumer prices rose 0.3 percent in March, after being unchanged in February.

The increases came as energy prices jumped by 1.9 percent and airline fares, reflecting higher fuel costs, increased 3 percent, the biggest one-month gain in six years.

The Wasatch Front's overall 1 percent rise, which is not seasonally adjusted, mirrors the West's 1 percent increase in consumer prices issued by the U.S. Bureau of Labor Statistics.

The Wasatch Front report shows a 3 percent rise in the cost of groceries, and a 0.9 percent rise in transportation costs, largely fueled by the price of oil and the declining value of the dollar.

"Rising commodity prices...combined with the weakness of the dollar...(are) not going to rectify easily or quickly," said Kelly Matthews, Wells Fargo executive vice president and economist.

Oil prices hit a record $115 a barrel Wednesday. At the same time, a gallon of gas cost Utahns an average $3.32, up 12 cents from a month ago and 41 cents from last year, according to AAA.

Matthews projected a gallon of gas in Utah could rise to around $3.50 during the high-demand summer driving months.

The cost of clothes rose a whopping 6.5 percent for the Wasatch Front. But Matthews attributes that to temporary price volatility. Nationally, prices rose 2.6 percent for the month but are down 0.2 percent in the past year.

The cost of other goods and services rose 1.2 percent for the Wasatch Front. Nationally, those prices are up 0.5 percent for March and 3.4 percent for the year.

Housing costs went up 0.7 percent, driven primarily by rising prices of household appliances, the report states. Nationally, housing cost 0.6 percent more for the month and 3.1 percent over the past year, the report states.

Those inflation pressures are occurring just as the economy seems to be sinking into a recession, with consumers cutting back on spending and the housing industry, where all the troubles started, sinking further.