Consumer Price Index: How Much More Did Gas & Electric Cost You in June?
The U.S. Bureau of Statistics released the Consumer Price Index for June 2022 on Wednesday, July 13, with prices across the board rising 9.1% in the past 12 months, not seasonally adjusted. The CPI increased 1.3% in June on a seasonally adjusted basis after rising 1.0% in May.
The energy index rose by 7.5% over the month of June, contributing nearly half of the all items increase, after rising 3.9% in May. The gasoline index rose by 11.2% after increasing 4.1% in the month before and the electricity index went up 1.7%.
Over the last 12 months, the energy index has risen by 41.6%, the largest 12-month increase since the period ending April 1980, says the U.S. Bureau of Statistics. The gasoline index jumped 59.9% over the same period, the largest since March 1980.
According to AAA, the national average for a gallon of unleaded gasoline was $4.63 as of July 13, which is down 38 cents from a month ago but $1.49 more than a year ago. Despite higher demand for gasoline over the July Fourth weekend, falling oil prices have contributed to lower prices at the pump. However, Car and Driver says that it’s unlikely that gas prices will continue on a downward trend to pre-pandemic levels before 2023.
U.S. power plants are also set to bring in their best profits in nearly two decades, reports Bloomberg. A key metric for gauging the profitability of coal plants for America’s largest power grid has nearly quadrupled from last year to $43 per megawatt-hour, according to Energy Aspects. The U.S. Energy Information Administration expects prices in wholesale electricity markets will significantly increase compares to last summer’s prices, with the cost of fuel for fossil-fuel generators being the biggest driver of prices.
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