Chicago area consumers paid prices above the U.S. city average for electricity (9.6 percent) and gasoline (8.4 percent) but paid below average prices for utility (piped) gas (-27.3 percent) in June 2012, as measured by the Consumer Price Index (CPI), the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that both local and national prices for utility (piped) gas and gasoline declined over the year. Electricity prices were down over the year in the Chicago area, while nationwide they remained about the same as compared to June 2011. (See table A.) (Data in this release are not seasonally adjusted; accordingly, over-the-year analysis is used throughout.)

A kilowatt-hour (kWh) of electricity cost Chicago area consumers $0.148 in June 2012, a decrease of 3.3 percent from one year earlier. Nationwide, electricity prices averaged $0.135 in June 2012, virtually unchanged from June 2011. Over the past five years, local electricity prices have been higher than the U.S. city average. (See chart 1.)

In June 2012 a gallon of gasoline averaged $3.903 in the Chicago area, 8.4 percent higher than the national average of $3.602. Over the year, gasoline prices in the Chicago area fell 5.5 percent and nationwide 4.0 percent. Although the price of gasoline can be volatile from month to month, local and national prices have mostly moved in tandem over the last five years. (See chart 2.)

A therm—a measure of constant heating value—of utility (piped) gas, commonly referred to as natural gas, in the Chicago area averaged $0.674 in June 2012, down 23.1 percent from one year earlier. Nationwide, a therm averaged $0.927 in June 2012, down 13.9 percent over the year. With a few exceptions over the past five years, Chicago utility (piped) gas prices have remained below the national average. (See chart 3.)

The Chicago-Gary-Kenosha, IL-IN-WI, Consolidated Metropolitan Statistical Area (CMSA) is comprised of Cook, De Kalb, Du Page, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties, in Illinois; Lake and Porter Counties in Indiana; and Kenosha County in Wisconsin.

Technical Note

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.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339.