December's CPI

ON January 12, the federal government released its Consumer Price Index data for December.

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Overall consumer prices for all goods and services rose seven percent over the twelve months ending last month. While electricity prices rose six and three tenths’ percent over that same period.

So, inflation-adjusted electric rates are back to falling. Which has usually been the case in recent years.

What the average American paid for a kilowatt-hour increased significantly less than general inflation in the last two months of 2021 due to moderating natural gas prices.

That can be seen in the price trend for a thousand cubic feet of gas. Rates actually fell in November and December, per this morning’s data, in nominal as well as inflation-adjusted terms. It’s a sharp reversal from October and the months before.