The cost of living for Wasatch Front residents moved up a minuscule 0.03 percent in May, First Security Bank reported Tuesday, well below the 0.2 percent increase (nonseasonally adjusted, as is the local survey) also reported Tuesday by the U.S. Labor Department.
The only signs of inflation locally were in transportation, which rose 0.3 percent in May on the heels of a 2.4 percent increase in April, and a 0.9 percent rise in local clothing costs, said First Security executive vice president and chief economist Kelly K. Matthews.Nationally, consumer prices on a seasonally adjusted basis - the most-watched figure by economists looking for signs of inflation - rose 0.3 percent, pushed up by increases in the prices of lettuce, cigarettes, gasoline and prescription drugs.
Wall Street seemed to be ignoring the inflationary signs as stock prices were up slightly in early trading after Monday's big decline.
Although the 0.3 percent increase was moderate, it was the biggest jump in consumer prices in 17 months. Last year and during the first four months of 1998, consumer prices had ranged from stable to a 0.2 percent rise.
The national report was seen as supporting economists who argue that inflation, after hitting an 11-year low of 1.7 percent last year, has stopped improving, but many of the items fueling inflation in May were viewed as temporary so the outlook is unclear.
Locally, the increases in clothing, transportation and utilities costs were offset by decreases in groceries and health care. All other categories were stable in May.
Since the bank began tracking local costs in March, 1988, the cost of living for Wasatch Front residents has gone up 34.5 percent, compared with a 39.8 percent rise nationally over the same 11-year period.
First Security added two new spending categories in May: recreation and education & communication. Matthews said they reflect adjustments in the national Consumer Price Index. Also, the local miscellaneous category has been replaced by other goods and services.
Here are how the various spending categories fared locally in May:
GROCERIES - Costs declined 0.8 percent following increases in March and April. Nationally, costs rose 0.3 percent.
TRANSPORTATION - Higher gasoline prices pushed the category up 0.3 percent, but that was still lower than the 0.4 percent increase nationally. Over the past six months, local transportation costs are down 4.6 percent from the same period a year ago.
CLOTHING - Local costs rose 0.9 percent while declining 0.4 percent nationwide.
HOUSING - Local costs were stable for the third month in a row, compared with a 1.7 percent increase nationally.
RESTAURANTS - The cost of eating out locally was stable for the third consecutive month. Nationally, restaurant prices rose 0.2 percent.
UTILITIES - Costs rose 0.3 percent following nine months of stable prices. Nationally, utility costs rose 0.7 percent.
HEALTH CARE - Costs were stable compared with a 0.3 percent rise nationally in May.
EDUCATION & COMMUNICATION - Costs were stable compared with a national rise of 0.2 percent.
RECREATION - Costs unchanged in May. Nationally, they rose 0.2 percent.
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Additional Information
Cost of living index
WASATCH FRONT
Index %Change (Non Seas.Adj)
Mar. 1988=100 6 mos. 1 mo
prior prior
All Categories 134.5 0.8 0.0
Housing 169.6 1.7 0.0
Transportation 114.5 -4.6 0.3
Health Care 140.5 1.6 0.0
Food at Home 146.0 4.5 -0.8
Clothing 121.1 -1.7 0.9
Food Away 146.4 2.1 0.0
Utilities 94.9 0.9 0.3
Recreation 100.0** N/A 0.0
Education & Comm. 100.0** N/A 0.0
Other goods & Svcs 100.5** N/A 0.0
NATIONAL
Index %Change (Non Seas.Adj) (Seas.Adj.)
Mar. 1988=100 6 mos.* 1 mo 1 mo.
prior prior prior
All Categories 139.8 1.6 0.2 0.3
Housing 136.5 2.1 0.1 0.3
Transportation 133.2 -1.8 0.4 0.1
Health Care 177.1 2.9 0.3 0.3
Food at Home 141.0 1.7 0.3 0.8
Clothing 118.3 0.2 -0.4 0.4
Food Away 133.6 2.2 0.2 0.2
Utilities 118.1 N/A 0.7 0.1
Recreation 101.0# N/A -0.1 0.0
Education & Comm. 100.1# N/A 0.2 0.3
Other goods & Svcs 176.0 N/A 0.9 0.7
* Last six-month percentage change compared with same period one year ago.
** (Feb. 1998=100 base) # (Dec. 199y=100 base) Courtesy of First Security Bank