Consumer energy prices largely fell in January, according to data released by the Bureau of Labor Statistics on Friday, moving in line with a broader oil market that had until January been falling.
Headline energy costs, one of the more volatile categories in the Consumer Price Index, fell 1.5% in January from the previous month and ticked down 0.1% from the previous year. (Energy prices are excluded from the “core” CPI reading due to their volatility.)
Energy commodities saw the largest move downward on both a monthly and yearly basis, with gasoline prices dropping by 3.2% month-on-month and fuel oil prices dropping by 5.7%, according to BLS data. On a yearly basis, gasoline prices have fallen by 7.5% since last January.
While the price of gasoline is one component of the price paid by consumers to fill their cars, that cost also factors in in crude oil prices, refining costs, distribution costs, and taxes. Pump prices have ticked up to a national average of $2.94 today versus $2.82 one month ago, but they are down from $3.16 a year ago.
Meanwhile, in the energy services category, electricity prices shed 0.1% from the previous month, while utility gas services prices rose by 1% as cold weather shocks throughout the country saw both residential and commercial demand for natural gas soar.
Both electricity and utility gas saw large jumps upward year-on-year, increasing by 6.3% and 9.8%, respectively, as the explosive power demand from the data center buildout has sent energy costs soaring.
