Inflation in Utah reached its highest level in three years this May, according to the May 2026 Roadmap to Prosperity Economic Dashboard released by the Utah Chamber and the University of Utah’s Kem C. Gardner Policy Institute.
Rising oil and gasoline prices contributed to headline inflation rising from 3.8% to 4.2% year-over from April to May. Core inflation, which excludes food and energy, also increased from 2.8% to 2.9% as price pressures expanded beyond the energy sector.
The economic data shows a divergence between Utah and national trends regarding consumer confidence. While U.S. consumer sentiment dropped 10% to an all-time low, Utah consumer sentiment fell only 0.2% in May. The Zions Bank Consumer Sentiment Index for Utah moved from 70.5 in April to 70.3 in May.
Derek Miller, president and CEO of the Utah Chamber, stated that Utahns are feeling the pressure of inflation, but noted that the state's economy is holding strength despite national pressures. He added that the Chamber will continue to monitor these indicators for long-term economic success.
The Utah labor market remains subdued with an unemployment rate of 3.8% in April. Job growth in the state was recorded at 0.6% year-over, which is slightly above the national rate of 0.2%.
Natalie Gochnour, director of the Kem C. Gardner Policy Institute, said Utah's economic outlook is increasingly subdued due to sluggish job growth and lower consumer confidence amid international unrest. She noted that mounting energy costs have driven inflation to its highest level in several years, causing financial strain for Utahns.
The Roadmap to Prosperity Dashboard is updated monthly to provide business leaders with timely economic insights and tracking of leading measures. The tool is designed to assist decision-makers with actionable context regarding the state's economic outlook.
