Los Angeles area consumers paid more than the U.S. city average for electricity (45.1 percent), utility (piped) gas (11.7 percent), and gasoline (8.5 percent) in July 2012, as measured by the Consumer Price Index (CPI), the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Richard J. Holden noted the local price of electricity increased over the year while the local price of utility (piped) gas fell during this 12-month period. The percent differentials between area and national prices for electricity and gasoline widened over the year.  (See table A. All data in this release are not seasonally adjusted; accordingly, over-the-year analysis is used throughout.)

A kilowatt-hour (kWh) of electricity cost Los Angeles area consumers $0.193 in July 2012, 4.3 percent more than one year earlier. Nationwide, electricity prices averaged $0.133 in July 2012, little changed from the previous year. For the past five years, electricity prices in the Los Angeles area have been consistently above the national average and ranged from at least 30.0 percent to over 75.0 percent higher. (See chart 1 and table 1.)

A therm—a measure of constant heating value—of utility (piped) gas, commonly referred to as natural gas, averaged $1.053 in the Los Angeles area in July 2012, a decrease of 11.1 percent from the previous July. Nationwide, a therm averaged $0.943 in July 2012, down 12.5 percent over the year. (See chart 2.)

In July 2012, gasoline in Los Angeles averaged $3.800 per gallon. Gas prices in Los Angeles were $0.298 or 8.5 percent higher than the national average of $3.502. Over the year, gasoline prices were little changed in Los Angeles and down 5.4 percent nationwide. Although gasoline prices can be volatile from month to month, the local price for gasoline has not fallen below the U.S. city average in the past five years. (See chart 3.)

Consolidated Metropolitan Statistical Area (CMSA) Definition:  The Los Angeles-Riverside-Orange County, Calif. metropolitan area is comprised of Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties in California.
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Technical Information
Average prices for electricity, utility (piped) gas, and gasoline are published monthly for the U.S. city average, the 4 regions, the 3 population size classes, 10 region/size-class cross-classifications, and the 14 largest local index areas. For electricity, average prices per kilowatt-hour (kWh) and per 500 kWh are published. For utility (piped) gas, average prices per therm, per 40 therms, and per 100 therms are published. For gasoline, the average price per gallon is published.  Average prices for commonly available grades of gasoline are published as well as the average price across all grades.
Price quotes for 40 therms and 100 therms of utility (piped) gas and for 500 kWh of electricity are collected in sample outlets for use in the average price programs only. Since they are for specified consumption amounts, they are not used in the CPI. All other price quotes used for average price estimation are regular CPI data.

With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity. These prices are then used to estimate a price for a defined fixed quantity.