June consumer prices rose 0.2% along Wasatch Front

SALT LAKE CITY — Consumer prices in this part of Utah rose slightly in June, with an upswing in housing costs outweighing a reduction in the price of gasoline, according to the latest Zions Bank Wasatch Front Consumer Price Index.

The index, which was released Friday, showed an overall non-seasonally adjusted boost of 0.2 percent in consumer prices for the month of June. That contrasts with a national decrease of 0.1 percent, as reflected in seasonally adjusted figures.

Overall, the consumer price index for this part of the state has risen by 1.6 percent in the last 12 months, which is above the national consumer price index rate of 1.1 percent.

For Utah consumers, June brought a 0.9 percent decrease in transportation costs that was spearheaded largely by a 2.9 percent reduction in gas prices — a boon for many residents planning summer vacations. In addition, the cost of food at home went down by 0.8 percent.

However, medical costs went up 2 percent in June, which was attributed to more costly dental X-ray and eye care costs, as well as a rise in the cost of caring for elderly patients.

Recreation costs went up 0.8 percent, a change chalked up primarily to slight increases in the cost of cable television and satellite networks.

Meanwhile, home prices have gone down, but it costs more to rent.

The average sale price for a Wasatch Front home was $260,682 in June, down from the average price of $282,891 found 12 months earlier. Fewer people are buying homes along the Wasatch Front, as well. Single-family home sales went down 20 percent from 985 in May to 813 in June.

Potential homebuyers appear to be more cautious and more inclined to rent instead, which has boosted rental costs, according to the index.

Even though some costs have gone up, the stability of prices is a significant factor during an economic recovery.

"Price movements are a major indicator of the direction of an economy," according to Zions Bank President A. Scott Anderson. "We have seen a stable increase in prices across the Wasatch Front, suggesting that our local economy is continuing its steady path toward recovery."

There are some reassurances from Federal Reserve officials, who say the nation's economy is on the mend despite the fact that the change is weaker than had been expected.

"The risks of slower-than-average growth for a couple of quarters may be notched up a bit, (but) the economy is still growing," according to Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, Va. "It's important to remember that recoveries are choppy and uneven in the early stages."

The index is provided by Zions Bank, with data collection and analysis handled by the Cicero Group/Dan Jones & Associates.

e-mail: lindat@desnews.com