The inflation rate in the Bay Area eased — a bit — in June, yet despite some signs of improvement, consumer prices continue to hop higher, propelled partly by skyrocketing costs for electricity, a new report shows.
Consumer prices in the nine-county region are rising faster than the nationwide pace, the U.S. Bureau of Labor Statistics reported Thursday.
The Bay Area inflation rate rose by 3.2% on an annual basis in June, which was a modest improvement from the increase of 3.8% that the region posted in April, the federal report showed.
Nationwide, inflation rose 3% during the one-year period that ended in June, the government agency reported.
In the Bay Area, however, one of the major propellants for the ongoing rise in consumer prices was a huge jump in the price of electricity provided by utility companies such as PG&E.
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The cost of electricity delivered to the home rocketed higher by an eye-popping 26.9% in June, which coincided with an interim rate increase that state regulators awarded to PG&E.
The increase in the cost of electricity in the Bay Area exceeded the pace in May when electricity prices jumped 24.4%
Prices for natural gas piped into the home by a utility such as PG&E zoomed higher by 21.7%.
Bay Area food prices were one of the hopeful components of the monthly inflation report in June.
Food prices in the Bay Area rose only 1.7% in June, which was a pace that was well below the overall inflation rate in the region.
The cost of food at home fell 0.3% last month, the report showed.
However, the cost of food consumed away from home jumped 5.2%.
Bay Area gasoline prices are showing signs of easing after two months of double-digit annual gains.
The cost of unleaded regular gasoline rose by a relatively sedate pace 2.7% in June.
