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by s1artibartfast 618 days ago
In the US, does it take into account elasticity of demand?

If price per kwh doubles, but energy budgets are stuck, how does this appear in the CPI.

1 comments

> If price per kwh doubles, but energy budgets are stuck, how does this appear in the CPI

It doubles. “BLS calculates and publishes average price series for price per kWh of electricity, per therm of utility (piped) gas service, and per gallon of fuel oil” [1]. (Not sure about PCE.)

[1] https://www.bls.gov/cpi/factsheets/household-energy.htm

Thanks! I wonder if or how they handle things like grid connection fees or California income based pricing.