Electric Deflation

Since the federal government’s 1982-1984 base period for a range of economic statistics, the overall Consumer Price Index for all consumer goods and services rose slightly more than two-and-a-half times by 2019. To be exact, 2.55657 times.

But the Consumer Price Index for consumers’ purchases of electricity alone during the same period rose not much more than two times. To be exact, 2.13362 times.

The difference between the rise in the overall CPI, 2.55657 times, and the rise in the CPI for electricity alone, 2.13362 times, indicates electricity’s inflation-adjusted price has fallen (or has deflated). Indeed, by a good amount. Which is good.