In March, U.S. electricity and gasoline prices experienced significant increases, with electricity rising by 0.9% and gasoline surging by 1.7%. This surge in prices caused the energy sector to far outpace broader inflation for the month, as indicated by data released by the Bureau of Labor Statistics (BLS). Energy prices, encompassing electricity, gasoline, fuel oil, and other related goods and services, rose by 1.1% last month, surpassing the 0.4% increase in the broader Consumer Price Index.
Over the past 12 months, energy prices climbed by 2.1%, although this figure remains lower than the overall 3.5% inflation rate. Gasoline prices saw a 1.3% increase over the past year, while electricity costs surged by 5%.
The rapid growth in demand stemming from data-intensive processing and manufacturing, coupled with delays in expanding the country’s electrical grids with renewable power supply and transmission lines, has contributed to the escalation of electric bills across the nation. Additionally, the surge in gasoline prices has been driven by the rising costs of crude oil and a slowdown in U.S. oil refining activity, leading to tightened fuel supplies.