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Rising Price of Energy
Wholesale prices of natural gas and electricity have risen dramatically in the West in recent months. These wholesale price increases are showing through to rates paid by households, particularly in the unregulated retail market for natural gas.
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Roundtable on AI and Energy Use
In 2024, the San Francisco Fed and the Federal Reserve System Innovation Office launched the EmergingTech Economic Research Network (EERN) to support a better understanding of how new technologies like GenAI are shaping the economies of today and the future. As part of the EERN initiative, we often hold roundtable discussions to hear from industries…
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Energy’s Impact on Inflation Expectations
Some closely watched measures of inflation expectations have been in gradual decline over the past five years. Over the same time, oil prices have fallen dramatically. Although the movements in energy prices are normally considered temporary, they appear to have played a large role in pushing down some longer-term forecasts for consumer price index inflation…
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Household Inflation Expectations and the Price of Oil: It’s Déjà Vu All Over Again
The University of Michigan survey of consumers shows that expected inflation has moved up noticeably over the past few months, raising concerns that we may be in for a period of rising inflation. However, the increase in expected inflation likely reflects the excess sensitivity of consumers to food and energy prices. Consistent with this hypothesis,…
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Solar Energy Powers SF Fed Operations in Phoenix
Forecasts for Phoenix, AZ climbed to 120-degrees Fahrenheit recently, hot enough to ground smaller airplanes. The Federal Reserve Bank of San Francisco’s Phoenix Processing Center (PPC) is using some of that solar energy to keep temperatures cool in cash operations.
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Pricey Oil, Cheap Natural Gas, and Energy Costs
Historically, oil and natural gas prices have moved hand in hand. However, in the past few years, while oil prices climbed to near record peaks, natural gas prices fell to levels not seen since the mid-1970s as a result of new hydraulic fracturing technology. U.S. consumer energy expenditures are still mainly driven by oil prices,…
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What is “core inflation,” and why do economists use it instead of overall or general inflation to track changes in the overall price level?
Dr. Econ discusses the Consumer Price Index (CPI) and what it comprises. Also examined is price fluctuation, and the volatility of food and energy prices.
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Does Headline Inflation Converge to Core?
Recent surges in food and energy prices have pushed up headline inflation to levels well above its underlying trend. In contrast, core inflation, which excludes food and energy prices, has remained low and stable. Historical data suggest that, since the early 1990s, headline inflation has tended to converge toward core inflation. Thus, high inflation is…
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THE Network: A Cross-Sector Approach to Lowering Transit + Housing + Energy Costs in California
Affordable housing advocates and their allies employ a collective impact strategy to work toward reducing housing, transportation, and energy costs for lower-income Californians.
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Effects of Oil Supply Disruptions on Oil Exporters, Importers
Economies may face different challenges during oil supply disruptions depending on whether they primarily import or export oil. Comparing the effects of past disruptions in Canada, a large net oil exporter, and the euro area, a large oil importer, suggests that both experienced rising inflation and declining economic activity. This reflects that the energy sector…