Dear Membership,

I wanted to share an update from Senator Mike Lee's office (below) regarding inflation for 2021. I thought you would appreciate getting some of the latest information on where things are currently at. Regardless of our political affiliations, inflation hurts us all. Hopefully, we can get a handle on this sooner than later. 

Thank You,

Mark Welcker
President & CEO
Point of the Mountain Chamber of Commerce

Last Friday, we received the final inflation numbers from 2021, confirming what we all already knew by experience: this was a challenging year for the country and a challenging year for Utah. The Personal Consumption Expenditures (PCE) index rose to 5.8% compared to this time last year, the worst we’ve seen in 39 years, whereas core PCE (the Federal Reserve’s preferred index, which excludes energy and food prices) exceeded predictions by rising to 4.9%.
 
Earlier in January, we received the Producer Price Index data, which measures wholesale prices, and has continued hovering around 9.8 and 9.7%. Also included in the chart is Consumer Price Index (CPI) data, as well as regionalized data that includes Utah (8.6%). While the whole country is having a rough go of it, Utah’s regional division is experiencing the worst inflation in the entire country. What does this mean for Utahns? The costs of everyday products in the state are soaring: from gasoline (+46%) to ground beef (+16%). Some of this is due to supply chain breakdowns, which Senator Lee has introduced legislation such as his STOP the GRINCH Act to address. But government spending and stimulus has also driven these rising prices: direct payments and enhanced unemployment benefits discouraged work and reduced supply even as they boosted demand: the perfect recipe for inflation. Meanwhile, the Federal Reserve’s reluctance to tighten the money supply by raising rates has also taken its toll.
 
Senator Lee introduced legislation in this Congress to restrict new government spending when inflation is well beyond its official 2% target, as it has been for many months now. He has also repeatedly introduced a constitutional amendment that would require the government to budget and spend responsibly, making it more difficult for lawmakers in Washington to flood the economy with expensive payouts and programs that drive up the cost of living in Utahns.
 
It is time to put an end to this covert tax on the American people. We will continue to monitor the inflation situation in Utah and around the country and provide updates as Senator Lee works in Washington to keep prices stable.