Las Vegas living costs decrease

Friday, May 16, 1997 | 11:59 a.m.

The price of goods and services went down in nearly every category in Las Vegas in April as the cost of living fell for the third time in five months, a monthly bank report said.

While consumer prices fell 0.1 percent in Las Vegas according to a report issued on Thursday by First Security Bank, the national Consumer Price Index released by the Labor Department the same day showed prices were up 0.1 percent nationally.

In fact, in most categories, the Las Vegas readings were on the opposite end of the scale from national statistics. Only housing and food costs, in restaurants and at grocery stores, showed similar price movement patterns.

The percentage change measured in First Security's report reflects a weighted average of the individual categories with the weights determined by the spending patterns of the average family budget.

In Las Vegas, prices went down for housing, health care, food at home, clothing and utilities. Prices were stable in food away and went up in transportation and miscellaneous expenses, based on nonseasonally adjusted percentages comparing April's prices with March's.

Index figures compare April's prices with costs in February 1994. An index figure of 115.8 means that prices now are 15.8 percent higher than they were in February 1994.

Transportation costs increased for the fourth month in a row. The 0.7 percent increase, the highest among the categories measured, was a result of higher automobile maintenance and insurance expenses. Following four months of increases, gasoline prices were down.

The other category that showed an increase, miscellaneous expenses, was up primarily because the cost of personal care products increased.

The cost of dining out remained stable in Las Vegas in April after four months of decreases.

Lower homeowner insurance premiums led to a decrease in housing costs and for the second straight month, men's and women's apparel costs were down resulting in a decrease in clothing expenses.

Health-care costs reversed a March trend with a combination of lower costs for dental care and a second straight month of lower prices for nonprescription drugs contributing to the drop in the index.

Grocery prices, a category watched closely by inflation monitors, were down 0.6 percent following five consecutive months of increases. Produce and meat increases were offset by declines in shelf items and alcoholic beverages.

First Security said produce prices increased 4.4 percent in April, with the cost of grapes leading the way, 58.6 percent higher. Also up were pears (28.4 percent), onions (24 percent) and cucumbers (11.6 percent). Bananas came down 13 percent and tomato prices fell 10.9 percent.

Meat prices were up 1.1 percent following monthly decreases since the end of last year. Turkey was down 8.7 percent and pork fell by 2.6 percent, but chicken went up by 4 percent.

Shelf items broke a four-month trend of increases by falling 2 percent in April. Soup went up 7.6 percent and canned fruit was up by 3 percent, but most other items had lower prices: cheese (23.8 percent), cereal (12.5), canned beans (11.2), crackers (7.1), cooking oil (6.1), coffee (5), eggs (0.9) and candy (0.8).

Alcoholic beverage prices fell in Las Vegas for the second straight month. Beer costs broke a two-month downward trend by increasing 1.5 percent in April while wine was down for a second month, by 2.4 percent.

The national Consumer Price Index is watched by Federal Reserve policy-makers, who meet next Tuesday to consider short-term interest rate adjustments. Some economists have speculated that the Fed will raise rates as a hedge against inflation.