Released in June, the latest Consumer Price Index report confirmed that residential electric rate increases are converging with overall price inflation.
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In May, overall prices for all goods and services rose a modest tenth of a percent, as compared to the month prior. But residential electric rates fell one percent.
Compared with the year prior, overall prices were four percent higher. And electric rates were five and nine-tenths percent higher. That’s the closest those two stats have been in a while.
Notably, the latest Producer Price Index report showed that the average price of natural gas paid by power plant owners was twenty-three and four-tenths percent below where it was a year prior. This trend is having a positive impact on electric rates, albeit with a time lag.