Electricity prices in and around New York City are up 28.2%, and that’s leaving customers feeling a painful jolt of inflation on almost every level.
The Consumer Price Index (CPI) – a measure of how the prices of goods and services change over a period of time – indicated an overall increase of 1.1% in January. This also reflected the 28.2% hike in electricity prices, the highest over-the-month increase in CPI history.
Food prices increased overall by 1% – with food prices at home rising 1.2% and food prices away from home at restaurants and other dining establishments rising 0.6%. Housing prices also increased, with an overall increase of 1.5%.
In the past year, the CPI for all urban consumers has recorded a steady surge of 5.1%. The index for all items rising 3.3% and energy and gas prices a staggering 28.5%.
Antonio Miranda is a longtime driver, and he says he went from spending $40 to about $80 for a full tank of gas.
“Sometimes it becomes a choice of whether or not you want to eat lunch or just eat from the snack machine sometimes [to be able to afford gas],” Miranda said, “It’s ridiculous, but you have to do what you have to do.”
Gas prices aren’t the only thing going up in cost, says Paul Tecoster, another New Yorker who believes that the pandemic has caused so much economic turmoil throughout the globe.
“Everything is going up in price, which makes it more difficult to have the same quality of life,” Tecoster said, adding that he’s noticed extreme fluctuations in gas throughout the whole year.
“It’s the global economy, there are just so many factors. It’s hard to pinpoint one, like pumping inflation or raised interest rates,” Tecoster said, “I worry about the future. To purchase a home is out of reach. I worry about our generation more, like I’m lucky I live in New York, but I know many people who’ve just resigned and left.
This hike in prices for basic goods and necessities means that New Yorkers are paying more for services and essential goods like food, gas and electricity while also struggling to make ends meet during the COVID-19 driven recession. With record job loss impacting the state, it is essential that this issue of inflation be addressed in order to keep families afloat and out of excessive debt while still battling the pandemic.
“These data indicate that prices are going up for many things consumers buy, but some items are going up much more than others,” Martin Kohli from the U.S Bureau of Labor Statistics told amNewYork Metro. “Consumers can use this information to think about possible changes in how they spend money. For example, since new and used cars rose 18.4% over the year ended in January, consumers may want to see if they can postpone planned car purchases. Within food, prices for meat, poultry, and fish were up 16.0% over the year, while fruits and vegetables were up 1.2 percent, so consumers might want to consider changing how they spend their money on groceries.”
This overall increase in pricing follows reports of Con Edison household electricity bills doubling or tripling within the past month, which triggered a call for investigation by State Senator Michael Gianaris.
At time of publication, there have been no formal policies by city or state government enacted to help with the rise of inflation, nor with the skyrocketing prices of electricity or gas that have impacted homes and businesses across the greater New York area. However, State Senator Michael Gianaris has indicated that he and his team will work to advocate for those affected by the rise in inflation, particularly with Con Edison.
“This is the type of pernicious behavior, and dismissive explanation, that has convinced me and so many others that the time has come to support public power for New Yorkers,” Gianaris said in a statement to QNS. “These increased utility costs are hurting thousands of New Yorkers. Until the Legislature enacts a systemic solution, the PSC (Public Service Commission) must investigate, act and work to provide relief to New York’s ratepayers — now.”
State Senator Joseph P. Addabbo Jr. agreed with Gianaris, saying Con Edison needed to be more transparent with their customers and know exactly how their suppliers drive up prices and why.
“While Con Ed says that they cannot control the price of the energy from their suppliers, they should know who those suppliers are, if there will be any change in price in the energy they provide, and at least notify their customers of any potential changes,” said Addabbo Jr. in a statement. “I believe there should be an investigation into this situation by the Public Service Commission to ensure that customers are not taken by surprise by such a large jump in price for a necessary utility, especially when so many residents, workers and businesses are still suffering from the negative economic effect of the COVID pandemic.”
A spokesperson for Con Ed explained that “volatile” energy prices are being impacted due to increased supply costs the utility giant is also facing.
“The changes in customer bills are mainly due to the supply cost of energy, and principally by the increased cost of natural gas,” said Philip O’Brien, assistant director of media relations at Con Edison, in a statement to amNew York. “Energy prices are volatile and can be affected by factors such as weather, demand and economic trends. Con Edison buys energy on the wholesale market and provides it to customers at the same price we paid, without making a profit on the commodity.”
Last updated 2/10/2022 3:49 pm
