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SALT LAKE CITY -- Prices are going up in Utah, but that's a good thing. Economists say it shows our economy is healthy because there's a new fear out there.
The story I'm telling today isn't poor Utah because our prices are growing. It's actually a positive and healthy sign for Utah that we are growing.
–Dr. Trent Kaufman
For months we've heard all about inflation and how it could cause a double-dip recession. But now some economists are starting to get worried about deflation.
"Deflation is caused by a weak economy. It's caused by weak consumer demand," said Dr. Trent Kaufman with the Cicero Group and Dan Jones and Associates. "While the federal government, through its stimulus and other packages, is trying to infuse the economy with money, we know people are holding on to their money right now."
Kaufman says nationally prices are dropping or deflating. They went down .1 percent in June. But in Utah, the Zions Bank Wasatch Front Consumer Price Index went up .2 percent for June.
Kaufman says that shows a stable and steady growth on the path to recovery. "The story I'm telling today isn't poor Utah because our prices are growing. It's actually a positive and healthy sign for Utah that we are growing," he says.
In Utah for June, prices fell for gas by 2.9 percent. Prices for food at home fell .8 percent. But medical care costs rose 2 percent and the cost to rent has gone up as well.
E-mail: mrichards@ksl.com
