Utah is in a favorable position with inflation below 4% and unemployment below 3%. While this inflation rate is above Utah’s 15 year average of 2.4%, the state’s current unemployment rate of 2.9% is also well below the 15 year average of 4.1%.
By the broadest measures, Utah’s economy is doing very well. That said, there are issues to consider. For example, shelter seems to be the primary driver of inflation, accounting for almost two-thirds of the total inflation rate. Naturally, this is going to most adversely affect renters who are not locked into long-term mortgage payments. It is also important to note that housing costs represent the largest portion of household budgets – especially at the lower end of the income scale. Similarly, large jumps in prices in child care at 4.5%, baby food at 7.3%, and food in general at 2.7% can have an outside effect on low-income populations.
(See figures 1 and 4 from the Utah Foundation’s interactive Inflation Dashboard to see the current year-over-year inflation rate for all U.S. urban areas and the four primary inflation subcategories.)
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