Plenty of folks locally are adjusting their lifestyles to cope. The Wells Fargo Consumer Price Index, which measures inflation along the Wasatch Front, registered no change from March to April, thanks in great part to a 4 percent drop in clothing prices. But consumers were saddled with a 2 percent increase in grocery costs and a 1.5 percent increase in transportation costs, which largely tracks gasoline prices.
The hope is that oil prices will moderate eventually, said Wells Fargo economist Kelly Matthews, but there are no guarantees. "The question is, what happens if we have another month or two or three of these increases. This is already having a large effect on so many families - things could get really ugly."
Nationally, the inflation story in April was much the same. Overall inflation was tame, with the 0.2 percent increase in consumer prices far less than many economists had predicted. Wall Street rallied, with the Dow Jones industrial average advancing as much as 150 points before settling up 66.
But food prices nationally registered the largest increase since 1990. Gas prices rose 5.6 percent for the month but, after being adjusted for seasonal variations, became, a 2 percent drop that doesn't accurately reflect the reality of record-setting gas prices.
"This is a fine inflation report if you don't need to eat, drive or depend on your paycheck," said economist Jaren Bernstein, of the labor-oriented Economic Policy Institute in Washington.
Along the Wasatch Front, the medical-care category registered the largest increase, of 2.9 percent, driven by increases in prescription drug costs.
But prices for food and gas remain of paramount concern. Although the cost of shelf-stable items remained fairly constant, eggs, fish, meat, poultry and produce all registered increases.
Higher food prices have the biggest impact, of course, on low-income families, such as Michael and Anne Fife, of Sandy, who have three children.
Anne Fife said keeping the family of five supplied with enough food is getting more challenging. "It is more difficult as I want to make sure our sons have enough to eat. We try to limit snacks, but boys tend to eat more and tend to get hungry more."
Despite the higher food prices, grocery stores are still offering highly discounted items to get consumers through the door.
Smith's Food & Drug in recent weeks offered $2 gallons of milk and orange juice, while Albertsons featured $1-per-box cereal. But not everything is on sale each week, and to get the best deals shoppers have to watch ads closely and might have to drive around, which eats up even more gasoline.
And with record gas prices already weighing heavily on their household, the Fifes try not to drive as much. Michael Fife takes the bus to work instead of driving the car.
Lance Pearson, of West Jordan, picks up sale items from various grocery stores on his way home from work rather than making separate trips. He has five children, ages 6 weeks to 12 years.
"We haven't cut coupons like this since we were first married," Pearson said of he and his wife, Lisa. "She even sends me out the door in the morning with a kiss and a handful of coupons."
Pearson said to save on gas, he works from home every Thursday, which he estimates saves him about 120 miles of driving per month.
Utah gas prices hit another record high on Wednesday, reaching an average of $3.63 per regular unleaded gallon. Diesel prices in the state also hit a record of $4.44 on Wednesday.
To cope with the higher gas prices, Duncan Murray, of Salt Lake City, is riding his motorcycle almost exclusively these days. Murray bought the bike about three years ago as a backup to his car but it has become his primary mode of transportation. The savings amount to $80-$100 a month.
"My last fill-up was $7.77, believe it or not."
lesley@sltrib.com
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* NEW YORK TIMES NEWS SERVICE and THE ASSOCIATED PRESS contributed to this story.
