Thursday, March 20, 1997 | 11:59 a.m.
The cost of dining out fell for the second straight month in Southern Nevada, pacing a 0.44 percent decline in the cost of living in February.
In a monthly report, Salt Lake City-based First Security Corp. reported a 6.38 percent drop in Las Vegas dining costs, one of four categories that fell.
The decline was the second in three months for the Las Vegas area and the largest monthly decline since October 1995. Nationally, the cost of living was up 0.3 percent in February on a nonseasonally adjusted basis, according to a report issued Wednesday by the U.S. Bureau of Labor Statistics.
The total percentage change reflects a weighted average of the individual categories to reflect spending patterns of a typical family budget.
In the dining-out category for February in Las Vegas, higher prices were reported for beverages after a month of decline and a for a fourth month on dairy dishes. But those were offset by a second month of lower prices on seafood and pork main dishes, on vegetable plates, reversing a January trend, and on main dishes prepared with beef, which broke a three-month upward climb.
Other categories showing lower prices were housing, health care and miscellaneous expenses. The biggest price increase -- 1.19 percent -- was recorded in the transportation category. Others showing increases were clothing, utilities and groceries.
Transportation costs were up for the second month in a row. Lower prices on automobile maintenance reversed a January trend, but were offset by a second month of higher auto insurance premiums and a third month of higher gasoline prices.
The cost of women's apparel was up for the sixth straight month, but children's clothing cost less, reversing a January trend. Menswear and clothing maintenance costs also were higher for the month.
Residential utility bills in Las Vegas rose for a second month with higher water and sewer bills pacing the increase.
The price of groceries had a fractional increase with meat prices declining, with produce, shelf items and alcoholic beverages increasing.
Health-care costs fell 0.4 percent for the month, continuing a January trend. A third consecutive month of higher costs were reported for hospital and non-prescription medicines. Those were offset by a second month of lower doctors' fees and dental care.
Nationally, the modest increase in the cost of living last month showed little evidence of inflation. The volatile gasoline and produce categories showed the biggest changes.
The Labor Department report on the February Consumer Price Index was slightly higher than economists expected but fit with their overall belief that inflation remains under control despite strong growth and tightening labor markets.
The Labor Department found the core rate of inflation excluding food and energy rising an even smaller 0.2 percent last month, or 2.2 percent so far for 1997 compared to 2.6 percent last year -- a 31-year low.
The modest increase, however, was sufficient to rattle financial markets fretting about whether Federal Reserve policy-makers will raise short-term interest rates next week.
Noting that the bond market already has ratcheted up interest rates for mortgages and other long-term loans, John Snyder, executive vice president of John Hancock Funds in Boston, said, "I now think it's time for (Federal Reserve Board Chairman) Alan Greenspan and the Fed to give a small bump to interest rates. No more talk, let's be done with it. Short term, a hike may rile the markets; long term, it's the right move."
THE SUN'S Richard N. Velotta contributed to this report.
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