Get breaking news alerts via email

Click here to manage your alerts
(Jim Michaud | The Associated Press) Despite the increase in fuel costs, Utah remains the third-cheapest state in the nation for fuel. Prices nationally are high but have started to level off. In March, they gained 1.7 percent, slower than the 6 percent increase in February.
Except for fuel prices, inflation mild in March
Spending » Spike hit Wasatch Front harder than U.S., even though gas 3rd cheapest here.
First Published Apr 13 2012 04:51 pm • Last Updated Aug 05 2012 11:32 pm

Wasatch Front gasoline prices surged in March, driving overall inflation up sharply, Zions Bank said Friday.

Nationally, prices at the pump rose more slowly last month, keeping U.S. price gains mild, according to a separate government report.

Join the Discussion
Post a Comment

The Wasatch Front Consumer Price Index increased 1.1 percent, caused mostly by a 5.2 percent rise in transportation prices. Gas prices, the biggest component of the transportation category, jumped 16 percent, Zions said.

Despite the increase in fuel costs, Utah remains the third-cheapest state in the nation for fuel. The average price for a gallon of regular gas in the state is $3.72, according to AAA’s Daily Fuel Gauge report. Only Missouri and Oklahoma have lower prices.

All other sectors, such as food, clothing and housing, maintained a low rate of inflation.

Nationally, the consumer price index rose 0.3 percent in March, the Labor Department said. That’s slower than February’s 0.4 percent rise.

Excluding food and gas, so-called core prices increased 0.2 percent in March.

Inflation has eased since last fall and is expected to stay tame. In 12 months that ended in March, prices rose 2.7 percent. That’s below last year’s peak year-over-year rate of 3.9 percent.

Core prices have risen 2.3 percent in the past 12 months, close to the Federal Reserve’s inflation target of 2 percent.

Prices are "benign and likely to stay that way for some time yet," said Ian Shepherdson, an economist at High Frequency Economics.

story continues below
story continues below

Mild price increases leave consumers with more money to spend, which boosts economic growth. Lower inflation also gives the Fed more leeway to keep interest rates low.

Gas prices are high but have started to level off. In March, they gained 1.7 percent, slower than the 6 percent increase in February.

And in the past week, the national average price per gallon fell 4 cents, to $3.90 on Friday.

Despite more hiring, unemployment is still high, and few workers are getting pay raises. So many retailers can’t charge more without risking the loss of some business.

Food prices nationally ticked up last month but are moderating after sharp increases last year.

The cost of meat, poultry and some fruits rose. Chicken prices jumped by the most in four years. The price of used cars and trucks also increased and rents rose, driving up core prices. Americans also paid more for medical care, clothing and airline fares.

A small amount of inflation can be good for the economy. It encourages businesses and consumers to spend and invest money sooner rather than later, before inflation erodes its value.

Still, few workers are receiving pay raises, which makes even a small amount of inflation challenging for most Americans. Average hourly wages, adjusted for inflation, fell for the third month in a row, the department said Friday.

Fed chairman Ben Bernanke has acknowledged that rising gas prices have boosted inflation. But he has maintained that the increases are likely temporary.

Most economists expect the Fed won’t announce any new policy initiatives at its April 24-25 meeting. Policymakers appear less inclined to take further steps to boost growth. Minutes from their March 13 meeting showed only a couple members expressed support for purchasing more bonds as a way to drive down long-term interest rates and promote more borrowing and spending.

A report Thursday indicated that inflation pressures aren’t increasing much at the wholesale level. The producer price index, which measures price changes before they reach the consumer, was unchanged in March. Rising costs for food and pickup trucks were offset by a drop in wholesale gas prices.

In the past 12 months, wholesale prices rose 2.8 percent, the smallest year-over-year rise since June 2010. Excluding food and gas, core wholesale prices rose 0.3 percent and 2.9 percent in the past year.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.