It is according to recent figures of US Energy Information Administration (EIA), showing that the average American house will spend around $ 186 per month in electricity in June, July and August.
This figure represents an increase of 3.7% compared to the last summer, And an increase of 25% compared to the rates that people paid in the summer of 2021.
EIA says the increase is driven by forecasts for a hotter summer than normal and a 37% increase in natural gas prices. Some regions will see higher increases than others, although almost all parts of the country can expect to pay more.
The highest increases will be observed in New England, where monthly power bills could climb at $ 200 on averagean increase of 6.7%,, the largest in the country. A report by the Wall Street Journal noted that this increase is driven by a lack of natural gas pipelines in that country.
Price increases occur while consumers continue to tighten their belts in response to the uncertainty triggered by the White House trade policies.
As the Pymnts wrote this spring, a Astonishing $ 92 billion could disappear from the American economy each year as consumers recovered. It is not a projection based on complex economic models or worst scenarios, the CEO of Pymnts, Karen Webster, wrote, but rather simple mathematics based on the real behavior of consumers already underway at the national level.
“But while the scenarios again on the scenarios continue to play, mathematics deserve to be revisited,” said this report. “According to census data, retail expenses in the United States have reached around 7.4 billions of dollars in the past year, around 80% of which come from consumers.”
The recent research of the Pymnts Intelligence reveals that 78% of these consumers say that they will reduce by buying less or buying cheaper. Even a 2% drop in spending in this group would wipe almost $ 100 billion in the economy, inviting the spectrum, as webster says Self-inflicted recession. “”
What remains, this report says is the “contradiction of today’s economy”, people spending more while buying less. Even when consumers lie down, the necessities still order their dollars.
“You can skip the morning latte, but you cannot ignore your family,” webster wrote. “You can cancel the subscriptions in streaming, but you must always pay the electric bill.”