SALT LAKE CITY — Rising prices and continued economic uncertainty are creating challenges for consumers and local businesses in Salt Lake City.
The Consumer Price Index increased 0.6% in September and rose 3.7% over the year. While consumers may notice higher costs in everyday purchases, businesses are also feeling the impact as the cost of products, transportation, and labor rises.
In Salt Lake City's 9th and 9th neighborhood, Mochi Kids founder and creative director Amanda Stewart has experienced that uncertainty firsthand.
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Stewart started Mochi Kids with her creativity and just $300. The business has since developed a regular customer base and carries hundreds of products. Stewart said the decision to open a brick-and-mortar location was rooted in providing a sense of community.
“I could’ve been in a warehouse or fulfillment center, but because people were really craving community at that point, we decided to open a brick-and-mortar store,” Stewart said.
Running the store, however, has meant continuously adapting to changing costs.
“We have, I guess, gotten used to the uncertainty,” Stewart said. “We’ve had so many price increases over the last two years that now our employees are used to checking the prices of things every time we get a restock shipment in.”
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Stewart said tariffs remain one factor in determining what customers ultimately pay.
“When we get a tariff bill, we kind of decide, are we going to add this to the price now or wait a little bit,” she said.
According to Stewart, some brands have increased their prices every few months, forcing the store to consider increases on its own shelves. She estimates most of the international products she purchases have increased in price by about 15% over the past two years.
She said domestic products have also become more expensive.
“The rising prices of everything, transportation, labor, that has also caused our domestically manufactured goods to increase in price,” Stewart said.
Despite those pressures, Maddy Oritt, director of public finance research at the Kem C. Gardner Policy Institute, said Utah's economy continues to perform well, even as some parts of the economy slow.
“We tend to outperform the national economy, so even though things are slowing down a little bit, seeing some slowing in the labor market, other areas, we are still hanging tough,” Oritt said. “But things like inflation is going to affect people, consumers, households, across the board.”
Oritt said consumer spending remains strong, but economic uncertainty is making it difficult for families and businesses to plan.
“It’s hard when you don’t know what you can predict, whether that’s for your household balance sheet, your budget at home or if you’re owning a business and you don’t know what prices are going to do,” Oritt said.
At Mochi Kids, Stewart said loyal customers continue to support the business and shop locally.
“I feel like I’m here not just for myself but for the community and for my employees, so we hopefully will be around for a while,” Stewart said.
Even with uncertainty surrounding prices and the broader economy, Stewart said maintaining that connection with customers and the community remains a priority.