Prices continue to rise despite lower inflation in February

SALT LAKE CITY (KUTV) — Prices are continuing to rise despite lower inflation in February.

Inflation increased nationwide by 6% in February, down from 6.4% in January. At almost 10%, food inflation remained higher.

The Consumer Price Index showed the shelter (housing/rent) index had the biggest increase, followed by food, recreation and household furnishings.

The Bureau of Labor Statistics reports that the inflation rate in February was 6%, which was the lowest increase in a year.

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Phil Dean, chief economist with the University of Utah's Kem C. Gardner Institute, said while inflation is going down month-to-month, it's still not going down fast enough to ease the pain at the grocery store.

"Prices are still going up, they are just going up at a slower rate. So when you go to the grocery store, you are still seeing even higher prices," he said.

High prices have led to low consumer sentiment in Utah and across the United States.

"By and large, people are very grumpy about the economy. They're not happy with what's going on. It's because their wage increases are not keeping up," he said.

Ironically, much to the dismay of Dean and other economists, consumer sentiment does not match consumer behavior and that's on factor-driving inflation.

"We see people feeling grumpy about the economy and still spending all over the place," he said.

Dean noted that while people who've been homeowners for years, have white collar jobs and money in savings are in a better position to ride out inflation, young renters are having a harder time.

"I worry about people on lower incomes that still have to deal with high food prices, rent and all those basic necessities," he said.