On Tuesday, the Labor Department released the Consumer Price Index data for September. It shows electric utility service continues to become cheaper inflation-adjusted.
Nationally, the CPI overall went up 1.5 percent since September 2015. But the CPI electricity went up just 0.1 percent during the period.
The gap between the CPI overall and the CPI electricity was 1.4 percent.
In the Northeast, the CPI overall went up 1.3 percent. But the CPI electricity went up just 0.3 percent.
The gap in the Northeast between the CPI overall and the CPI electricity was 1.0 percent.
In the South, the CPI overall went up 1.4 percent. But the CPI electricity actually went down 2.0 percent.
The gap in the South between the CPI overall and the CPI electricity was 3.4 percent. This is a lot.
In the Midwest, the CPI overall went up 0.2 percent. But the CPI electricity went down in this region as well, by 0.8 percent.
The gap in the Midwest between the CPI overall and the CPI electricity was 1.0 percent.
Let’s look at what’s happened to the inflation-adjusted price of electric service over a longer time period than the last year.
Nationally, the CPI overall went up 6.4 percent during the last five years, September 2011 to September 2016. But the CPI electricity went up just 4.7 percent during the period.
The gap between the CPI overall and the CPI electricity, over the last five years, was 1.7 percent.
As changes in the price for electricity lag changes in the price for all goods and services, electricity is effectively cheaper for consumers.
Number-crunching courtesy of Public Utilities Fortnightly.
