Wasatch Front consumer costs rose slightly in June

Costs were pretty steady along the Wasatch Front in June, with a very modest overall increase of 0.2 percent, compared with 0.9 percent nationally, according to data released Wednesday.

Since the beginning of 2009, the overall cost of living in Utah was up 1.3 percent, while nationally it was up 2.1 percent for the same period, according to information from the Wells Fargo Consumer Price index and the U.S. Bureau of Labor Statistics.

The jump in consumer prices nationally was the largest in 11 months and, at a seasonally adjusted 0.7 percent, was slightly higher than the 0.6 percent increase that economists had expected. It was the biggest single-month increase in a year. But The Associated Press categorized the jump as a "blip" and said inflation is unlikely to arrive any time soon, as severe recession is keeping a lid on wage pressures.

Wasatch Front expenses that became cheaper included food, both at home and away; housing; utilities; recreation and communication. Health-care costs were absolutely flat locally. But transportation and other goods and services cost more.

Transportation costs rose 5.5 percent from May to June, driving the cost of living up along the Wasatch Front. But even with that increase, Utah transportation costs have dropped more than 15 percent compared to June 2008. Nationally, transportation costs are down more than 12 percent compared to a year ago.

Wells Fargo economists predict that gas prices will peak sometime in the next six weeks.

The Federal Reserve said Wednesday that industrial production fell 0.4 percent in June with crimped output of manufactured goods, including cars, machinery and household appliances. The decline was less severe than in May, a possible sign the recession is easing a bit.

Major stock indicators jumped more than 2 percent in afternoon trading, prompted by strong earnings and an upbeat forecast from Intel. The Dow Jones Industrial average added more than 200 points. But the higher-than-expected inflation reading sent bond prices lower for the third straight day.

While Utah grocery prices were down a little bit from the previous month, they were still nearly 9 percent higher than they were a year ago, while nationally, grocery prices were rising at a "much slower pace," according to Wells Fargo's CPI.

Food costs that dropped included meat, poultry, fish and eggs, which were down 4.6 percent. The cost of produce was down 0.4 percent, driven primarily by a significant decrease (12.5 percent) in the price of green peppers.

Contributing: Associated Press

e-mail: lois@desnews.com