Cost of living in Wyoming continues to rise

Apr. 28—CHEYENNE — A recent economic analysis showed how every resident in Wyoming continues to experience higher prices as they shop for groceries or pay rent.

The Wyoming Cost of Living Index was released earlier this month by the Wyoming Economic Analysis Division, which compares the price change of items such as food, housing and transportation in June and December of each year. Statewide inflation was at 7.3% for all items in December 2022, compared to the 10.1% inflation rate at the end of 2021.

Although the rate was lower at the end of last year, principal economist Amy Bittner said this doesn't mean inflation has decreased. She described it as a "deceleration" of the inflation rate.

"It's not accelerating as fast as it previously was," she told the Wyoming Tribune Eagle. "But there were still higher prices over the year."

When broken down by consumer category, experts said the inflation rate in the state's fourth quarter of 2022 was largely impacted by food and housing prices. The inflation rate for food was the highest at 15.1%, followed by housing at 8.3%. The lower rates were recreation and personal care at 5.9%, medical at 5.1%, apparel at 3.1% and transportation at 1.3%.

The inflation rate for transportation experienced the most significant change in the past year. The previous rate in the fourth quarter of 2021 was 22.1%, leading to a decrease of nearly 20 percentage points. Apparel, medical and recreation and personal care stayed closer to the rate reported in 2021.

Price data on consumer items is collected in 28 cities and towns across the state, and weighted using item weights from the U.S. Bureau of Labor Statistics and Consumer Price Index. They reflect the overall importance in the average consumer's budget. Housing makes up 48.3% of the weighted components for overall statewide inflation, transportation is 18.2%, food is 13.4%, recreation and personal care are 8.5%, medical is 8.5% and apparel is 3.1%.

Another breakdown provided in the analysis is regional inflation rates, and the difference between the highest and lowest rates remained under two percentage points. Southwest Wyoming was impacted the most at a rate of 8.2%. The second highest was the central part of the state at 7.4%, followed by the southeast at 7.2%. Northwest Wyoming had an inflation rate of 7%, and the northeast region had 6.7%.

This was very similar to the national trend. The U.S. Bureau of Labor Statistics reported the inflation rate from December 2021 to 2022 was 6.5%.

"Every part of Wyoming, the different regions, experienced higher prices over the year," said Bittner. "Nothing unique to one area of Wyoming or another — everyone's feeling it."

Nick Colsch, director of the Wyoming Center for Business and Economic Analysis at Laramie County Community College, said there are responses from both consumers and the government when inflation is this high.

He said consumers will buy less, and that has been witnessed across America. Colsch said economic growth hasn't been near what it was last year, but it's still positive and moving in the right direction.

However, he said consumer confidence starts to wane as residents look at gas prices or see the price of eggs go up when they are shopping.

"Inflation puts a damper on people's mood about how well other aspects of the economy, like unemployment, are doing," he said. "Unemployment is at 3.5%. It's about as low as it ever gets historically, and so there's still good things happening. But it gets masked by what you see on a regular basis, which is changes in gas prices and changes in grocery prices."

Colsch said the government reacts with policies to curb inflation, working to lower it to a more manageable rate of around 2%. He said the Federal Reserve raised interest rates in the past year and a half, and that makes it harder for individuals to borrow money.

"It's going to start delaying purchases of new cars. It's going to delay the purchases of new homes. It's going to delay purchases and upgrades to appliances and furniture," he said. "That will also start cooling off those areas of the economy."

At the state level, Gov. Mark Gordon said in a statement that he understands the challenge that national inflation has created for the people of Wyoming. He said it impacts the budgets of families, businesses and the state government.

Gordon placed the blame on President Joe Biden's administration. He said since Biden took office in January 2021, federal government officials have "injected excessive amounts of money into the economy, while simultaneously stifling oil and gas development on federal lands and driving up energy prices."

The governor addressed inflation directly in his supplemental budget and put forward proposals to address and offset the impacts of inflation.

"These included funding for property tax relief (which he signed as expansion of the property tax refund program), setting aside funding for enterprise inflation, support for a Wyoming Retirement System retiree inflation adjustment and phase two of the employee salary adjustment, and adoption of the Joint Education Committee's recommendation regarding the external cost adjustment," according to his statement.

Gordon encouraged raises for state employees in both the general budget and the supplemental budget, and Colsch said this does keep inflation higher — but he said not raising wages would spin the economy into a recession much faster.

He also said it is unlikely the pay increases will fully match inflation. While some buying power will be lost, he doesn't believe it will place as much pressure on the economy.

"You'd see really sharp cutoffs in spending, like dramatic cuts," he said. "It could really harm the economy much worse if there were no pay increases."

Jasmine Hall is the Wyoming Tribune Eagle's state government reporter. She can be reached by email at jhall@wyomingnews.com or by phone at 307-633-3167. Follow her on Twitter @jasminerhphotos and on Instagram @jhrose25.