Higher prices for health care, transportation and food -- at both grocery stores and restaurants -- helped boost the Wasatch Front's consumer price index up 0.5 percent during July.


Wells Fargo Bank's chief economist, Executive Vice President Kelly Matthews, did not have a verifiable explanation for why Utah prices in those categories grew faster than their comparable counterparts nationally, where the index declined 0.2 percent overall.


His suspicion: Food and health-care costs were lower to begin with in Utah, so any actual cost increases may be larger in terms of percentage. Given that the cost of gasoline is much lower than a year ago, Matthews attributed the higher transportation costs to increases in new-car prices, perhaps an indication the Cash for Clunkers program resonates with Utahns.


In conjunction with Matthews' monthly report, Wells Capital Management investment strategist Sterling Jenson said he is optimistic the stock market is on the verge of a recovery.


"The economy and the financial markets have finally turned a corner and are probably very early in a new recovery cycle," Jenson said, discounting the probability of another major collapse while acknowledging the market "will undoubtedly remain volatile and could certainly suffer another sizable setback."


He foresaw "a stock market that has been in a bottoming process for almost 10 months and finally appears to have a nice firm base from which it can soon launch a new bully rally."


Even with July's slight increases, Matthews said overall prices along the Wasatch Front at the end of July were 1.2 percent lower than a year earlier. Lower transportation costs account for most of the difference, falling 15.3 percent below July 2008 levels. Nationally, those costs declined 13.2 percent.


Where Utahns are feeling the pinch more than other Americans is at mealtime.


July grocery costs were 8.2 percent higher than a year earlier -- nationally they are up 2 percent -- while restaurant prices are up 7.8 percent in that same time frame (3.2 percent nationally).


Within the food category, a 4 percent increase for produce drove the price hike. That increase was spurred by a 16 percent jump in the cost of citrus fruits and 9.2 percent bump for green peppers. While beef prices rose 6.2 percent, other meat and fish products were cheaper last month. Poultry was down 14.7 percent, seafood 6.1 percent and pork 1.2 percent.


Wasatch Front housing costs increased 0.2 percent last month, but remain 0.7 percent lower than in July of 2008, largely because of rising rental rates, Matthews said. He will be watching closely over the next few months to see whether the federal stimulus package and various Treasury actions will compel the private sector to seek money for growth, or if it will continue to use loan money to eradicate desperate circumstances.


"We have not made that transition yet," Matthews said.