Teh current debate about electricity prices is misguided.Inflation in electricity prices needs to be compared with inflation in the overall CPI, and over the past decade, electricity prices have increased exactly as fast as the overall price level in the economy, see chart below.
electricity Price Increases Aligned with Broader Economic Inflation
Recent discussions surrounding electricity prices are, according to analysis by Apollo Global Management, potentially misfocused. The firm argues that increases in electricity costs shoudl be evaluated in relation to overall inflation as measured by the Consumer Price Index (CPI). Their analysis indicates that, over the past decade, electricity prices have risen at the same rate as the general price level in the economy.
This conclusion is supported by data from the US Bureau of Labor Statistics (BLS) and Macrobond, as visualized in a chart released by Apollo’s Chief Economist.
A high-resolution version of the chart is available for download here.
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Apollo makes no representation or warranty,expressed or implied,with respect to the accuracy,reasonableness,or completeness of any of the statements made during this presentation,including,but not limited to,statements obtained from third parties.Opinions, estimates and projections constitute the current judgment of the speaker as of the date indicated. They do not necessarily reflect the views and opinions of Apollo and are subject to change at any time without notice.Apollo does not have any responsibility to update this presentation to account for such changes. There can be no assurance that any trends discussed during this presentation will continue.
Statements made throughout this presentation are not intended to provide, and should not be relied upon for, accounting, legal or tax advice and do not constitute an investment recommendation or investment advice. Investors should make an independent investigation of the information discussed during this presentation, including consulting their tax, legal, accounting or other advisors about such information. Apollo does not act for you and is not responsible for providing you with the protections afforded to its clients. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product or service, including interest in any investment product or fund or account managed or advised by Apollo.
Certain statements made throughout this presentation may be “forward-looking” in nature. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking information. As such, undue reliance should not be placed on such statements. Forward-looking statements may be identified by the use of terminology including, but not limited to, “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology.
