Another explanation for the uptick in energy and petroleum prices in February is Winter Storm Fern. The dramatic surge in electric power consumption as well as heating fuels drove prices up during the prolonged cold weather.
The fuel oil surge almost certainly is partially attributable to winter weather. Electricity prices actually dropped during the month, according to the CPI data.
According to other sources I've read, the wholesale price of electricity from generators actually rose during Fern. My electric bill reflects that increase.
As I have written before, the constant caveat when discussion consumer price inflation data is "your mileage may vary."
The broad CPI data reported by the BLS each month is compiled on a national scale, with some drill downs into various geographic regions. As a national metric, regional exigencies such as weather are always at risk of being relatively underrepresented in the national data--or overrepresented in regional data.
Which is why I reference what the CPI data says, which in this case is that electricity prices declined month on month in February.
Which is not to challenge any particular observation. When we look at the national CPI data, some prices in some regions are going to reflect greater inflation, and some prices in some regions are going to reflect less inflation.
Overall, the national CPI data shows electricity pricing declining month on month in February. It could be that the price hikes attributable to Fern might show up next month. It could be that market and political considerations may restrain the degree to which utility companies can pass along their rate hikes.
New York was hit hard by winter weather. I am not at all surprised local price impacts there are greater than what the national data shows.
“No matter how much corporate media says “muh tariffs” will produce inflation, when reality does not show inflation, the “muh tariffs” narrative stands discredited and debunked. It must and it will, every time.”
Corporate media continues to destroy its own credibility. Every sane person knows that an adult must admit when he is wrong, or his judgment loses credibility. Corporate media now deserves to fail!
Another explanation for the uptick in energy and petroleum prices in February is Winter Storm Fern. The dramatic surge in electric power consumption as well as heating fuels drove prices up during the prolonged cold weather.
The fuel oil surge almost certainly is partially attributable to winter weather. Electricity prices actually dropped during the month, according to the CPI data.
According to other sources I've read, the wholesale price of electricity from generators actually rose during Fern. My electric bill reflects that increase.
As I have written before, the constant caveat when discussion consumer price inflation data is "your mileage may vary."
The broad CPI data reported by the BLS each month is compiled on a national scale, with some drill downs into various geographic regions. As a national metric, regional exigencies such as weather are always at risk of being relatively underrepresented in the national data--or overrepresented in regional data.
Which is why I reference what the CPI data says, which in this case is that electricity prices declined month on month in February.
Which is not to challenge any particular observation. When we look at the national CPI data, some prices in some regions are going to reflect greater inflation, and some prices in some regions are going to reflect less inflation.
Overall, the national CPI data shows electricity pricing declining month on month in February. It could be that the price hikes attributable to Fern might show up next month. It could be that market and political considerations may restrain the degree to which utility companies can pass along their rate hikes.
New York was hit hard by winter weather. I am not at all surprised local price impacts there are greater than what the national data shows.
“No matter how much corporate media says “muh tariffs” will produce inflation, when reality does not show inflation, the “muh tariffs” narrative stands discredited and debunked. It must and it will, every time.”
Corporate media continues to destroy its own credibility. Every sane person knows that an adult must admit when he is wrong, or his judgment loses credibility. Corporate media now deserves to fail!
Corporate media signed its death warrant during the COVID Pandemic Panic. They're just slow in dying.