Electric Rate Deflation

June’s Consumer Price Index was reported the week of June 12. The overall CPI, for all goods and services, was up exactly 3 percent as compared with a year earlier – June 2023.

This follows the recent trend of inflation that is notably moderate. On a month-to-month basis, the overall CPI went up or down by 0 percent in May, and went down 0.1 percent in June.

The average price or rate per therm for utility natural gas service was up 3.7 percent as compared with a year earlier. That’s mostly because the month-to-month increase in June was 2.4 percent.

The average price or rate per kilowatt-hour for utility electric service was up 4.4 percent as compared with a year earlier. This follows the recent trend that is quite moderate.

On a month-to-month basis, the electricity component of the CPI went down 0.1 percent in April, went up or down by 0 percent in May, and went down sharply by 0.7 percent in June. Three straight months of electric rate deflation.

Utility services are only a relatively small factor in the inflation index. Electric service prices or rates are only one-forty-first of the overall CPI. Gas service prices or rates are only one-hundred forty-fifth of the overall CPI.