The most recent Cedar City and St. George data collected for the American Chamber of Commerce Researcher's Association show an upward spike in southern Utah prices, especially in St. George, but longer-term data indicate that wages are growing at an even faster rate.
"The data compiled in early January for the first quarter of the year indicate there has been upward pressure on local prices. Overall, prices rose at a 5.18 percent annual pace in St. George and at a 3.80 percent annual rate in Cedar City," according to Alan Hamlin, professor of business at Southern Utah University, who collects information for the ACCRA."That is higher than the inflation rate for the rest of the nation. Most of the change occurred in the areas of groceries, health care and miscellaneous items."
Hamlin points out that according to Job Service data, wages in the two areas are also beginning to increase faster than the national average. Since 1991, wages in Washington County have increased an average of 1 percent more than inflation. During the last 12 months average wages rose 6.4 percent to $1,441 per month per worker, and the number of jobs increased 11.9 percent to 24,347.
Iron County wages are also rising faster than its inflation rate. Wages rose 7.1 percent during the past 12 months to $1,346 per month per worker, and the number of jobs increased 12.2 percent to 10,835.
"This data is very encouraging," Hamlin said. "Since the mid-1980s our costs have risen faster than our wages because of the growth that has occurred in southern Utah. It now appears that the economic benefits to growth and development (higher wages and increased standard of living) are beginning to occur for average families in our area."
The study - funded jointly by Intermountain Health Care, WECCO, St. George and Cedar City - results in quarterly data which is then included in the cost of living index published by the ACCRA. Costs for cities around the nation can then be compared.
The composite cost of living for St. George in the last-published index, which shows data for the third quarter of 1995, was 100.7 (100 represents the national average cost). This is slightly higher than the previous quarter's 100.6. Cedar City's cost of living for the third quarter of 1995 was 93.4, slightly lower than the 94.9 recorded three months earlier.
"The cost of living in southern Utah remains stable when compared to other cities," Hamlin said.
Other Utah cities and their third quarter 1995 costs were: Provo, 98.7; Logan, 101.8; and Salt Lake City, 95.6.
"Interestingly," Hamlin notes, "all Utah cities were within about 7 percent of each other, regardless of the rural or urban nature of the area."
The cost of living in selected out-of-state cities shows Las Vegas at 106.4; Flagstaff, Ariz., 108.9; Denver, 104.3; Los Angeles, 117.6; and San Diego, 119.5.
Third-quarter 1995 breakdown for individual categories for St. George shows food, 103.9; housing, 107.4; utilities, 80.3; transportation, 102.5; health care, 96.6; and miscellaneous, 98.6. Cedar City's equivalent costs are food, 101.7; housing, 79.6; utilities, 85.1; transportation 103.1; health care, 99.7; and miscellaneous, 99.4. An average 1,800-square-foot new home in St. George now costs $150,625 while the cost of the same home in Cedar City has risen to $112,625. Average apartment rents in St. George are now $549 per month, while those in Cedar City are $436.