The prices of tobacco and smoking products have increased significantly more than four times as fast as the Consumer Price Index in the last thirty-five years. The prices of motor vehicle insurance have increased significantly more than twice as fast. The prices of medical care services have increased more than twice as fast.
Tobacco and smoking products, motor vehicle insurance and medical care services seem like they’ve become more expensive. They have, as their relatively rapid rate of price increases compared to the CPI attests to.
On the other hand, the prices of apparel have increased half as fast. The prices of used cars and trucks have increased slightly more than half as fast. And the prices of new vehicles have increased only a little bit more than that.
Apparel, used cars and trucks and new vehicles too seem like they’ve become less expensive. They have, as their relatively sluggish rate of price increases compared to the CPI attests to.
The prices of electricity (electric rates) have increased a bit more than four-fifths as fast as the CPI, according to the latest Bureau of Labor Statistics data through November. And the prices of utility piped gas service (gas rates) have increased around two-thirds as fast as the CPI.
The American consumer may not have noticed. But, as in the case of apparel and vehicles, electric and gas services have become less expensive evidenced by the comparison of their price trajectories with those of goods and services overall.
What is Public Utilities Fortnightly? It’s essentially an “association.” Who are its members? State regulatory commissions, utilities, consumer advocates, vendors, professional firms and other PUF member organizations. What’s its purpose? To enable member organizations to highlight and debate developments in utility regulation and policy in the public interest.
Steve Mitnick, Editor-in-Chief, Public Utilities Fortnightly, and President, Lines Up, Inc.
E-mail me: mitnick@fortnightly.com
