Las Vegas cost of living up slightly

Friday, Aug. 15, 1997 | 11:21 a.m.

After three months of decreases, the Las Vegas area cost of living went up a modest 0.2 percent in July, equaling the national rate of increase recorded in the Consumer Price Index on a seasonally adjusted basis.

Five categories within First Security Bank's report had increases while three had fractional decreases. The bank's calculations are based on a weighted average determined by spending patterns of a typical family budget.

Transportation, clothing and miscellaneous expenses had the largest increases for the month while dining out, utilities and health care were down. Groceries and housing costs were up slightly.

"Overall, the Las Vegas average cost of living over the past six months rose 3.6 percent compared with the same February to July 1996 average," said Kelly Matthews, executive vice president and chief economist for First Security, which conducts cost-of-living surveys in several communities in which the bank operates.

Without the seasonal adjustments, the national cost-of-living index increased only 0.1 percent. In the national report, higher food costs were blamed for the increase.

Transportation costs represented the biggest increase in Las Vegas' July report. A fourth consecutive month of lower gasoline prices was offset by a second month of higher car insurance premiums, raising the index by 0.61 percent.

Clothing expenses were up 0.59 percent, the second month in a row for an increase in the category, with lower overall maintenance costs offset by a second month of higher price tags on menswear and women's apparel. Women's clothing had decreased the previous four months in a row.

Miscellaneous expenses were up for the fifth straight month, at 0.59 percent, with lower costs for personal care products offset by a second month of higher entertainment costs.

Other increases for the month: groceries, up 0.14 percent, continuing a June trend, and housing, up 0.03 percent, ending a three-month downward spiral.

In the groceries category, decreases in alcoholic beverage prices were offset by increases for meat, produce and shelf items.

Wine prices fell 1.2 percent, ending a two-month upward spike, while beer prices were down 0.5 percent, reversing June's trend. Meat prices rose 0.5 percent with chicken up 12 percent and two months of decline and pork up 11.1 percent. Produce climbed 0.5 percent with lemons (12 percent), lettuce (11.7 percent) and celery (7.5 percent) up and grapes (18.5 percent), apples (17.3 percent) and pears (17.2 percent) down. Shelf items were up 0.4 percent overall, with soft drinks down 6.7 percent, but peanut butter, salad dressing and eggs up 3.1, 2.7 and 2.1 percent, respectively.

Housing prices were up due to higher homeowner insurance premiums.

Dining out costs fell 0.02 percent in July with lower prices recorded for the second straight month on main dishes prepared with seafood.

Utility costs -- the only component within the index that has decreased in the more than three years First Security has issued the reports -- were down 0.01 percent in July as a result of lower water bills.

Health care costs also were down 0.01 percent with lower prices in nonpresription medicine breaking a two-month upward trend.